Leverage ratio is the ratio of liability to total assets. The most famous leverage ratio is the debt to asset ratio. It defines the level of debt in the capital structure. The target leveraged ratio is the desired level of gearing in the capital structure of a company.
When a company finances a project the funds come usually from both sources; equity and debt. Companies can set policies that can restrict investment in highly levered projects. In other words, the level of debt is set as a target either in terms of percentage. That percentage is the target leverage ratio.
Mexican Motors’ market cap is 200 billion pesos. Next year’s free
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Use the following income statement and balance sheet for Jim’s Espresso:
You are looking at an investment that has an effective
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Why is it that real options must have positive value?
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Aguilera Acoustics, Inc. (AAI), projects unit sales for
