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Indifference EBIT
Indifference EBIT (Earnings Before Interest and Taxes) is the level of EBIT where a company is indifferent between different financial options or structures, as each would result in the same earnings.
Interest
The cost of borrowing money, typically expressed as an annual percentage of the principal.
Unlevered Cost of Capital
The cost of capital for a company that has no debt, reflecting the returns required by equity owners alone.
Annual Coupon
The total interest payments made to bondholders each year, expressed as a percentage of the bond's face value.
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