Debt capacity
	• Ability to borrow. The amount a firm can borrow up to the point where the firm value no longer increases.
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	Borrow Firm Point
	Related Terms
	Cost of debt Cost of long term debt Debt Debt capital Debt covenants Debt displacement Debt due Debt equity ratio Debt financing Debt instrument Debt leverage Debt limit Debt limitation Debt market Debt ratio Debt relief Debt securities Debt security Debt service Debt service coverage ratio Debt service parity approach Debt swap Debt to capital ratio Debt to equity ratio Firm's net value of debt Funded debt Interest rate on debt Junior debt subordinate debt Long term debt Long term debt ratio Long term debt to capitalization Long term debt to equity ratio Original issue discount debt oid debt Secured debt Senior debt Short term debt Standard debt provisions Structured debt Subordinated debt Total debt Total debt to equity ratio Total debt to total assets Trade debt Unfunded debt Unsecured debt

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