Debt service coverage

Definition:

The ratio of cash flow available to the borrower to the annual interest and principal payments on a loan or other debt.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

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An attempt to acquire a large portion of a company's stock to gain control by offering stockholders a premium over the market value for their shares.

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