Examlex
A variable is a value that is usually a coefficient of a parameter in an equation.
Debt
Money that is owed or due to be paid, typically resulting from borrowing funds to be repaid with interest.
Financial Leverage
Financial leverage is the use of borrowed money (debt) to amplify the potential returns from an investment or project.
Leverage
The use of borrowed funds to increase the potential return of an investment.
Optimal Capital Structure
The best mix of debt, preferred stock, and common equity that maximizes a company’s stock price while minimizing its cost of capital.
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