Examlex
Why does escalation of commitment occur?
Preferred Stock
A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with dividends that are paid out before those to common shareholders.
Capital Structure
The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, which is used to finance its overall operations and growth.
Target Capital Structure
The optimal mix of debt, equity, and other securities a company aims to hold, balancing risk and return to maximise shareholder value.
Flotation Costs
Financial outlays a business faces when it issues new stocks, covering charges for underwriting, legal services, and registration documentation.
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