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The skin is essentially composed of two layers,known as:
Firm Value
The total value of a company, considering all sources of capital including debt and equity.
Required Return
The minimum expected return on an investment needed by an investor, factoring in the risk associated with the investment.
Initial Cash Outflow
Initial cash outflow refers to the amount of money a business or investor must spend upfront to initiate a project, investment, or acquisition.
Cash Inflows
The total amount of money being transferred into a business, typically from operational, investment, and financing activities.
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