Debt/Equity (D/E) Ratio, calculated by dividing a company’s total liabilities by its stockholders’ equity, is a debt ratio used to measure a company’s financial leverage.…
The capital asset pricing model (CAPM) is a model that describes the relationship between systematic risk and expected return for assets, particularly stocks. CAPM is…
A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for…
Leverage is the investment strategy of using borrowed money: specifically, the use of various financial instruments or borrowed capital to increase the potential return of…
A leverage ratio is any one of several financial measurements that look at how much capital comes in the form of debt (loans), or assesses…