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Optimum Leverage Ratio |
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Optimum Leverage RatioThe borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level.Optimum Leverage Ratio Similar MatchesDebt leverageDebt leverageAmplification of the return earned on equity when an investment or firm is financed partially with borrowed money. Unleveraged required returnUnleveraged required returnThe required return on an investment when the investment is financed entirely by required return (i.e., no required return). Leveraged investment companyLeveraged investment companyAn investment company or mutual fund entitled to borrow capital for its operations. Also, an investment company that issues both income shares and capital shares. Leveraged equityLeveraged equityStock in a firm that relies on financial leverage. Holders of leveraged equity experience the benefits and costs of using debt. Unleveraged programUnleveraged programThe use of borrowed funds to finance less than 50% of a purchase of assets. In a leveraged program borrowed funds are used to finance more than 50%. Further SuggestionsLeveraged leaseLeveraged stock leverage Reverse leverage Operating leverage Homemade leverage Reverse leveraged buyout Financial leverage Leveraged company leveraged buyout leverage on a warrant Unleveraged beta Net benefit to leverage factor Target Leverage Ratio Leverage Leverage Leveraged recapitalization reverse leverage Leveraged required return Highly leveraged transaction (HLT) Leverage clientele Financial leverage clientele |
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