Also found in:Dictionary,Thesaurus,Medical,Legal,Acronyms,Encyclopedia,Wikipedia. Related to Finance:fiance Finance A discipline concerned with determining value and making decisions. The finance function allocates resources, including theacquiring,investing, andmanagingof resources. ...
Financial Leverage – Meaning Financial leverage means the presence of debt in the capital structure of a firm. In other words, it is the existence of fixed-charge bearing capital, which may include preference shares along with debentures, term loans, etc. The objective of introducing leverage to...
Definition: Financial leverage, also called trading on equity, is the financial trade off between the return on the issuance of preferred stock or debt and the cost of maintaining that preferred stock or debt. In other words, can the company earn more from their investment than it costs to ...
Read this article to learn about the financial leverage. After reading this article you will learn about: 1.Meaning of Financial Leverage 2. Impact of Financial Leverage 3. Importance. Meaning of Financial Leverage: Financial leverage means employment of funds obtained...
In finance, leverage is very closely related to fixed expenses. We can safely state that by introducing expenses that are fixed in nature, we are leveraging a firm. By fixed expenses, we refer to the expenses, the amount of which remains unchanged irrespective of the business’s activity. Fo...
Consolidated First Lien Net Leverage Ratio means, with respect to any Test Period, the ratio of (a) Consolidated First Lien Net Debt as of the last day of such Test Period to (b) Consolidated EBITDA for such Test Period. Effective Leverage Ratio has the meaning set forth in the Statement...
Securities may be represented by a certificate or, more typically, “non-certificated”, that is in electronic or “book entry” only form. Certificates may be bearer, meaning they entitle the holder to rights under the security merely by holding the security, or registered, meaning they entitle...
The financial structure provides insight into a company's leverage and cost of capital. The economic system is a broader concept than the financial structure. It encompasses a range of factors that influence the production, consumption, and distribution of goods and services in an economy. Optimal...
Investors use leverage to significantly increase the returns that can be provided on an investment. They leverage their investments using various instruments, including options, futures, and margin accounts. Companies can use leverage to finance their assets. In other words, companies can use debt fi...
In finance, synergy is the collective benefit that two companies achieve when they merge or form strategic alliances. These synergies come in various forms, each enhancing a different aspect of business performance, such as revenue growth, cost reduction, and other financial leverage. ...