Optimum Leverage Ratio
Definition:
The borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level.
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Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University
Term of the Day
A dividend that was scheduled to be declared, but that is not voted by the Board of Directors probably because the company is experiencing financial difficulties.
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