KEY TERMS Define each of the following terms: a. Capital; capital structure; optimal capital structure b. Business

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KEY TERMS Define each of the following terms:

a. Capital; capital structure; optimal capital structure

b. Business risk; financial risk

c. Financial leverage; operating leverage; operating breakeven

d. Hamada equation; unlevered beta

e. Symmetric information; asymmetric information

f. Modigliani–Miller theories g. Trade-off theory; signaling theory h. Reserve borrowing capacity; pecking order i. Windows of opportunity; net debt.

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