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Debt-Equity Ratio
A metric for evaluating a firm's financial leverage, determined by dividing its total debts by the equity held by shareholders.
Cost of Debt
The actual rate a firm incurs on its overall debt, representing the cost of acquiring funds.
Equity Risk
The risk of loss associated with fluctuations in the price of equities or stocks.
M&M Proposition I
A principle in corporate finance that asserts the market value of a firm is unaffected by the capital structure, assuming no taxes and perfect markets.
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