levered firm
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Modigliani–Miller theorem — The Modigliani–Miller theorem (of Franco Modigliani, Merton Miller) forms the basis for modern thinking on capital structure. The basic theorem states that, under a certain market price process (the classical random walk), in the absence of taxes … Wikipedia
Modigliani-Miller theorem — The Modigliani Miller theorem (of Franco Modigliani, Merton Miller) forms the basis for modern thinking on capital structure. The basic theorem states that, in the absence of taxes, bankruptcy costs, and asymmetric information, and in an… … Wikipedia
Hamada's Equation — In corporate finance, Hamada’s Equation is used to separate the financial risk of a levered firm from its business risk. The equation combines the Modigliani Miller theorem with the Capital Asset Pricing Model. It is used to help determine the… … Wikipedia
free cash flows — cash not required for operations or for reinvestment. Often defined as earnings before interest (often obtained from the operating income line on the income statement) less capital expenditures less the change in working capital. In terms of a… … Financial and business terms
Leverage (finance) — In finance, leverage (sometimes referred to as gearing in the United Kingdom) is a general term for any technique to multiply gains and losses.[1] Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives.[2]… … Wikipedia
Capital structure — Gearing ratio redirects here. For the mechanical concept, see gear ratio. Finance Financial markets … Wikipedia
Economic bubble — An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is trade in high volumes at prices that are considerably at variance with intrinsic values… … Wikipedia
Free cash flow — In corporate finance, free cash flow (FCF) is a cash flow available for distribution among all the security holders of a company. They include equity holders, debt holders, preferred stock holders, convertibles holders, and so on.There are two… … Wikipedia
ancient Rome — ▪ ancient state, Europe, Africa, and Asia Introduction the state centred on the city of Rome. This article discusses the period from the founding of the city and the regal period, which began in 753 BC, through the events leading to the… … Universalium
Modigliani-Miller Theorem - M&M — A financial theory stating that the market value of a firm is determined by its earning power and the risk of its underlying assets, and is independent of the way it chooses to finance its investments or distribute dividends. Remember, a firm can … Investment dictionary
