Web www.software-risk.co.uk

Use of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity.

Copyright © 2005, Campbell R. Harvey. All Worldwide Rights Reserved. Do not reproduce without explicit permission.

Related Articles
Target payout ratio
Retention rate
Payout ratio
Note agreement
Net investment income per share
Long-term debt/capitalization
Leveraged recapitalization
Leverage

Similar Areas

Finance Items

Selected Books

Keywords

Financial leverage

financial

leverage

debt

expected return

return on equity

debt to debt plus equity

ratio

ratios