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Essay Details:
Essay text:
With a number of firms to be regulated the firm's capital structure becomes important for continued client service.
Important Learning Terms
Capital structure
Break even analysis
Leverage/Gearing
MM model
Degree of Financial Leverage
Degree of Operation Leverage
Degree of Combined Leverage
Introduction
The firm's session structure, the proportions of debt and equity used to finance the firm's assets, has implications for stockholder value. Additionally, capital structure affects leverage, which, in turn, affects the expected return and risk facing owners and creditors of the firm. This session analyzes the co-dependent leverage/capital structure phenomenon when the corporation has both fixed operating and fixed financial expenses in its cost structure...
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Common topics in this essay:
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