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Financial Leverage
The use of borrowed funds to increase the potential return of an investment, amplifying both the potential gains and losses.
Unlevered Cost
The cost of investment or project financing without taking into account the impact of leveraging or borrowing.
Capital Structure
The mix of debt and equity financing used by a company to fund its operations and growth.
Interest Tax Shield
Deducting interest expenses on debt from taxable income leads to a reduction in income tax liability.
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