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Unlevered Cost of Capital.



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The unlevered cost of capital (UCC) is the minimum rate of return that a firm must earn on its assets in order to satisfy its creditors, owners, and other stakeholders. The UCC is determined by the firm’s weighted average cost of capital (WACC), which takes into account the cost of both debt and equity financing. … Read more

What is operating leverage?



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The meaning of operating leverage is the accounting term that aims to increase the profitability modifying the balance between variable costs and fixed costs. It can be considered as the impact that these have on the general costs of the company, referring to the relationship between sales and its profits before taxes and interest. Another … Read more