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Unlevered Firm
A business that operates without any debt financing, using only equity for its operations and investments.
Rate of Return
The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.
Homemade Leverage
The use of personal borrowing to adjust the overall level of financial leverage that an individual utilizes in their investments.
Capital Structure
Describes the mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity, used to finance its overall operations and growth.
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