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What is meant by the terms levered and unlevered equity? Suppose an investor in Paypal Holdings, an unlevered firm, wanted the company to borrow more.

What is meant by the terms levered and unlevered equity? Suppose an investor in Paypal Holdings, an unlevered firm, wanted the company to borrow more. What could they do that would be equivalent to the company borrowing more?

In perfect capital markets, what is the impact of using financial leverage on a firms value and cost of capital? Explain your answer.

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