Long-term debt/capitalization financial definition of Long-term debt/capitalization

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Long-term debt/capitalization

Long-term debt/capitalization

Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common stockholder's equity.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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