DOUBLE LEVERAGE Definition

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DOUBLE LEVERAGE usually refers to a situation where a holding company raises debt and downstreams it as equity capital, or subordinated debt, to a subsidiary, i.e. it is the use of debt by both the parent company and the subsidiary, in combination with the companys equity capital, to finance the assets of the subsidiary.

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COMPOUND INTEREST is interest calculated from the total of original principal plus accrued interest.

IMMATERIALITY is of complete irrelevance requiring no further consideration.

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