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When preparing to go shopping after the Christmas holidays, Christy actively scans the ads in the local newspaper for coupons and contests. While in the store, Christy also looks for free samples of new products and products she hasn't purchased previously. The coupons, contests, and free samples are all examples of
Expected Perpetual EBIT
The forecasted continuous earnings before interest and taxes that a company expects to generate over an indefinite future period, assuming a steady state of operations.
Unlevered Cost of Capital
The cost of capital for a company that has no debt, representing its cost of equity.
Financial Leverage
The use of borrowed funds to increase the potential return of an investment.
All Equity Firm
A business that is financed entirely through equity capital, with no debt or borrowed funds.
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