Examlex
Which of the following ear structures is correctly paired with a description?
Optimal Capital Structure
The best mix of debt, equity, and other financing sources that minimizes the company's cost of capital while maximizing its value.
Debt-equity Ratio
Ratio that measures a company's financial leverage by dividing its total liabilities by its shareholder's equity, indicating the balance between debt financing and equity financing.
Direct Bankruptcy Costs
The costs that are directly associated with bankruptcy, such as legal and administrative expenses.
Financial Trouble
Financial trouble indicates a situation where an individual, company, or other entity is struggling to manage or repay their debts or meet financial obligations.
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