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Differentiate between an initiator firm and a target firm. Are these static roles?
Unlevered Cost
The cost of financing a project or investment without the impact of debt, or the cost of capital for a company with no debt.
Cost of Equity
The rate of return a company is expected to pay to its shareholders for their investment in the company's equity, often estimated using the Capital Asset Pricing Model (CAPM).
Pre-Tax Cost
The expense or cost incurred by an entity that has not yet been reduced by considerations for taxes.
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