Leverage Ratios

Business / Finance / Leverage Ratios: Measures of the relative value of stockholders, capitalization, and creditors obligations, and of the firm's ability to pay financing charges. Value of firm's debt to the total value of the firm (debt plus stockholder capitalization).

Leveraged Stock

Business / Finance / Leveraged Stock: Stocks financed with credit, such as that purchased on a margin account. MORE

Liquidity Ratios

Business / Finance / Liquidity Ratios: Ratios that measure a firm's ability to meet its short-term financial obligations on time, such as the ratio of current assets to current liabilities. MORE

Market Value Ratios

Business / Finance / Market Value Ratios: Ratios that relate the market price of the firm's common stock to selected financial statement items. MORE

Net Benefit To Leverage Factor

Business / Finance / Net Benefit To Leverage Factor: A linear approximation of a number, that enables one to operationalize the total impact of leverage on firm value in the capital market imperfections view of capital structure. MORE

Leveraged Required Return

Business / Finance / Leveraged Required Return: The required return on an investment when the investment is financed partially by debt. MORE

Leveraged Recapitalization

Business / Finance / Leveraged Recapitalization: Often used in risk arbitrage. A public company takes on significant additional debt with the purpose of either paying an extraordinary dividend or repurchasing shares, leaving the public shareholders MORE

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