Thursday, November 13, 2014

Levered Firm and Unlevered Firm

November 13, 2014    No comments

Levered Firm :- A  firm that uses a percentage of debts in its capital structure to finance its business is called a Levered Firm. It uses Equity and Debts for doing business.

Unlevered Firm :- A  firm that does not use debts in its capital structure to finance its business is called an Unlevered Firm. It does not use loans for doing business. It depends on Equity funds only.

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