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Explain the difference between Unlevered Cost of Capital and Weighted Average Cost of Capital. If the value of a levered company is denoted as VL
Explain the difference between Unlevered Cost of Capital and Weighted Average Cost of Capital. If the value of a levered company is denoted as VL and an unlevered company is VU, what is VL - VU? As the corporate tax rate increases, what happens to WACC? What happens to FCF? What happens to Enterprise Value (EV)?
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