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Leverage on a warrant |
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Leverage on a warrantA measure of 'true gearing' which measures how much more a warrant will move in percentage terms against the underlying asset. Calculated by multiplying the delta by gearing. Also known as elasticity, or omega.Similar MatchesDebt leverageDebt leverageAmplification of the return earned on equity when an investment or firm is financed partially with borrowed money. Target Leverage RatioTarget Leverage RatioThe ratio of the market value of debt to the total market value of the firm that management seeks to maintain. Operating leverageOperating leverageFixed operating costs, which are characterized as leverage because they accentuate variations in profits. Net benefit to leverage factorNet benefit to leverage factorA 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. Optimum Leverage RatioOptimum Leverage RatioThe borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level. Further SuggestionsLeverageLeveraged stock leverage Leveraged investment company Unleveraged required return Reverse leveraged buyout Leveraged equity reverse leverage Unleveraged beta Leveraged recapitalization Leveraged required return Leverage Financial leverage clientele Homemade leverage Leveraged company Leverage clientele Leveraged lease Highly leveraged transaction (HLT) leveraged buyout Unleveraged program Financial leverage Reverse leverage |
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