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Discuss the advantages and disadvantages of being single in early adulthood.
Levered Firms
Companies that employ debt (loans or bonds) in their capital structure alongside equity (stocks).
Unlevered Firms
Companies that operate without using debt or borrowed capital in their capital structures.
Financial Distress Cost
Expenses associated with a company struggling financially, including legal fees, restructuring costs, and impaired ability to conduct business.
Leverage
The use of borrowed capital or debt to increase the potential return of an investment.
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