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Debt/equity ratio

• Indicator of financial leverage. Compares assets provided by creditors to assets provided by shareholders. Determined by dividing long-term debt by common stockholder equity.

 
 

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 Embedded terms in definition
 Assets
Common stock
Debt
Equity
Financial leverage
Financial lever
Leverage
Shareholders
Stockholder equity
Stockholder
 
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<< Debt to equity ratio Debtor in possession >>

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