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Target Leverage Ratio
(redirected from Target Leverage Ratios)

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Target Leverage Ratio
The ratio of the market value of debt to the total market value of the firm that management seeks to maintain.

Target Leverage Ratio
The level of debt that a company wishes to maintain expressed as a percentage of its market value. Some companies are more comfortable with debt than others. Increased leverage increases the risk to a company, but can increase returns.


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