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If a lease on a commercial building contains an escalation clause, the
Levered Firm
A company that uses debt in addition to equity in its capital structure, often to finance operations and grow.
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.
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