levered firm


levered firm

Author
Message
PS
Forum Newbie
Forum Newbie (2 reputation)Forum Newbie (2 reputation)Forum Newbie (2 reputation)Forum Newbie (2 reputation)Forum Newbie (2 reputation)Forum Newbie (2 reputation)Forum Newbie (2 reputation)Forum Newbie (2 reputation)Forum Newbie (2 reputation)

Group: Forum Members
Posts: 3, Visits: 1

On page 474 of the 9th edition text book,they have given that the firm U is unlevered. Does this mean that the firm has not borrowed anything?

Could you please explain what does the term unlevered mean?

[NEAS: Unlevered mean no debt; financed entirely by equity. If the firm is unlevered (no debt), the return on assets = the return on equity = the opportunity cost of capital.]


GO
Merge Selected
Merge into selected topic...



Merge into merge target...



Merge into a specific topic ID...





Reading This Topic


Login
Existing Account
Email Address:


Password:


Social Logins

  • Login with twitter
  • Login with twitter
Select a Forum....











































































































































































































































Neas-Seminars

Search