The Modigliani-Miller (M&M) theorem is a cornerstone of modern corporate finance theory, developed by economists Franco Modigliani and Merton Miller in the 1950s.1
Posts tagged as “Cost of Debt”
Leveraged Profit Expansion
November 5, 2025 |
"Leveraged profit expansion" is a concept that describes how a company uses leverage—primarily debt or fixed costs—to magnify its potential profits and accelerate growth or returns.
(2/6) Finance: A Manager’s Guide to Accounting and Financial Management
November 4, 2025 |
For the professional manager, finance is the empirical discipline that translates operational activity into measurable economic outcomes. It is the language of value creation, resource allocation, and risk control.
Economic Value Added (EVA)
October 18, 2025 |
Economic Value Added (EVA) is a financial performance metric that measures a company's true economic profit—the value created in excess of the required return of the company's investors.
Shareholder Value Analysis (SVA)
October 18, 2025 |
Shareholder Value Analysis (SVA), often associated with the work of Alfred Rappaport, is a sophisticated approach to financial management and strategic decision-making. It is founded on the principle that the primary objective of a company should be to maximize the economic value created for its equity shareholders.
Cost of Capital
August 8, 2025 |
Cost of capital is the minimum return a business must earn on its investments to justify the cost of financing and satisfy expectations of both debt holders and equity investors.
Leverage
June 14, 2025 |
Financial leverage, also known as "gearing", is a core concept in finance that involves using borrowed money (debt) to finance assets or investments.
Profitability Ratios: Return on Equity (ROE)
February 12, 2022 |
Return on Equity (ROE) is ratio between Net Profit Before Interest and TAX. and Equity. It compares Net Profit Before Interest and TAX with Equity.