|
|
Target Leverage Ratio |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Target Leverage RatioThe ratio of the market value of debt to the total market value of the firm that management seeks to maintain.Target Leverage Ratio Similar MatchesUnleveraged betaUnleveraged betaThe beta of an unleveraged required return (i.e., no debt) on an investment when the investment is financed entirely by equity. Reverse leverageReverse leverageOccurs when the interest on borrowings exceeds the return on investment of the funds that were borrowed. Financial leverage clienteleFinancial leverage clienteleA group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy. 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. Leveraged recapitalizationLeveraged recapitalizationOften 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 with a continuing interest in a more financially leveraged company. Popular form of shark repellent See: Stub. Further SuggestionsUnleveraged required returnLeverage Reverse leveraged buyout leveraged buyout leverage on a warrant Operating leverage reverse leverage Leveraged lease Unleveraged program Debt leverage Leverage clientele leverage Leveraged stock Homemade leverage Leveraged investment company Leverage Highly leveraged transaction (HLT) Leveraged required return Leveraged equity Leveraged company Optimum Leverage Ratio Financial leverage |
|
|
|