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Are financial incentives always positive for a firm?
Pre-Tax Cost
The cost of an investment or loan without taking taxes into account.
Debt-Equity Ratio
A metric reflecting how company assets are proportionally financed by shareholders' equity and debt.
Cost of Equity
The return that investors expect for investing in a company's equity, considering the risk of the investment.
After-Tax Cash Savings
The increase in cash flow that results after all applicable taxes have been deducted from the gross income.
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