Optimum Leverage Ratio

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Optimum Leverage Ratio

The borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level.

Optimum Leverage Ratio

The debt-asset ratio that allows a company to achieve the highest possible return without taking on excessive risk. The optimum leverage ratio minimizes the cost of capital without acquiring a high possibility of default.

References in periodicals archive ?

The machine produces top of the line windings thanks to a traverse mechanism with circumference-dependent image interference, whilst ball tracks and compression cylinders with optimum leverage ratios produce wound packages having a perfectly parallel build.

KARL MAYER as specialist will present its latest innovations in the denim sector