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Reverse leverage |
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Reverse leverageThe investment of borrowed money where the return fails to match the interest payable on the loan.Reverse leverageOccurs when the interest on borrowings exceeds the return on investment of the funds that were borrowed.Reverse leverage Similar MatchesUnleveraged 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%. Debt leverageDebt leverageAmplification of the return earned on equity when an investment or firm is financed partially with borrowed money. 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. 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. Leveraged companyLeveraged companyA company that has debt in its capital structure. Further SuggestionsUnleveraged required returnNet benefit to leverage factor leverage on a warrant Leveraged equity Highly leveraged transaction (HLT) leveraged buyout Reverse leveraged buyout Leveraged required return Homemade leverage Financial leverage Leveraged recapitalization Financial leverage clientele Unleveraged beta Leveraged investment company Leveraged lease Operating leverage Leverage Leverage clientele leverage Leverage Leveraged stock |
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