Auto care has a pretax cost of debt of 8.3 percent and a un levered cost of capital of 13.7 percent. the total tax rate is 23 percent and the cost of equity is 15.6 percent. the debt-equity ratio is .46
Leveraged equity cost represents a risk component of a company's financial structure. Companies often have to rely on borrowed capital raised from the market to finance their projects. The market offers liabilities through investors.
The difference between leveraged and unleveraged free cash flow is the expense. Leveraged cash flow is a company's cash after meeting its financial obligations. Leveraged free cash flow is a company's money before it settles its financial obligations.
Leverage is an investment strategy that uses borrowed money. Specifically, we use various financial instruments or borrowed capital to increase the potential return on our investments. Leverage can also refer to the amount of debt a company uses to fund its assets.
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