Equity in a Firm with No Debt Is Called Unlevered

question 24

True/False

Equity in a firm with no debt is called unlevered equity.

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Definitions:

Voluntary Basis

Participation or action taken by an individual or entity without coercion, typically without expectation of payment.

Consideration

An item of worth traded between entities within a contractual agreement, rendering the contract enforceable by law.

Enforce

To compel observance of or compliance with a law, rule, or obligation.

Consideration

The concept in contract law that involves something of value exchanged between parties, which is necessary for a contract to be considered legally binding.