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Under what conditions is the management of a company most able to take a strike?
Unlevered Cost of Capital
Refers to the cost of capital for a firm that has no debt, representing only the cost of equity.
Financial Leverage
The use of borrowed money (debt) to amplify the potential return of an investment or project.
Debt/Equity Ratio
The indicator that compares the role of debt and equity in financing company assets.
Financial Leverage
The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.
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