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Match the following E. A value equal to income after taxes plus non cash expenses. The rate normally stays constant during the line of
Match the following E. A value equal to income after taxes plus non cash expenses. The rate normally stays constant during the line of the bond and indicates what the bondholders annual dollar income will be B. A measure of volatility of returns on an individual stock relative to the market A long term unsecured corporate bond The market value of a firm s assets are less than its liabilities, and the firm has a negative net worth H. A theory that addresses the relative importance of debt and equity in the overall financing of the firm. A model that relates the risk-return trade-offs of individual assets to market returns. A security is presumed to receive risk-free rate of return plus a premium for risk The cost of alternative sources of financing of the firm A. Debenture B. Bankruptcy C. Coupon Rate D. Capital Asset Pricing Model E. Cash Flow F. Beta G. Weighted Average Cost of Capital H.Capital Structure Theory 1. Cost of Capital
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