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Can someone please help me with these finance vocab terms???? Thank you :) pictures are attached just comment below Tenn Bu sin ess risk Asymmetric

Can someone please help me with these finance vocab terms???? Thank you :) pictures are attached just comment below

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Tenn Bu sin ess risk Asymmetric in formation Operating leverage Financial leverage Reserve borrowing capacity Signal Financial risk EPS indifference point Optimal capital structu re Capital structure Answer EDD EDD D DD Description The level and nature of risk attributable to a firm's activities and operations, and ignoring the risks associated with the firm's capital structure. The risk that is borne solely by the firm's shareholders, and results from a firm's decision to finance its assets using fixed-cost sources of capital, including debt securities and preferred stock. This practioe of employing a large proportion of fixedcost sources of financing, such as debt securities and preferred stock, exposes a firm to business risk. The situation in which outsiders, such as external shareholders, credits, suppliers, and customers have less and inferior information about a firm's past, current. and future conditions and prospects, oompared to the firm's managers. The mix of debt, preferred stock, and common stock that maximizes the price of the firm's common stock. The level of sales at which a firm's earnings per share {EFS} are the same, regardless of which of two alternative capital structures are oompared. The extent to which a firm's oost structure oontains a large proportion of fixed oosts, which raises its level of business risk if the firm's sales decline. Management's decision to issue new common stock versus new debt securities in response to its evaluation of the firm's future opportunities. The combination of common equity, preferred stock, and debt capital used to finanoe a firm's assets. The financial flexibilityr available to a firm which allows it to borrovlI additional debt capital when needed or desired as a result of using less than the optimal level of debt in its current capital structure

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