FAQs tagged as

Financial Leverage

  1. If a company has a high debt to capital ratio, what else should I look at before ...

  2. How can a firm bring down its operating leverage?

  3. What is the long-term outlook of the banking sector?

  4. What are the biggest risks involved with financial spread betting?

  5. What is the difference between a drawdown magnitude and drawdown duration?

  6. How are leveraged buyouts financed?

  7. Why is purchasing stocks on margin considered more risky than traditional investing?

  8. What can I tell about a company by looking at its solvency ratios?

  9. What is considered a good net debt-to-equity ratio?

  10. Besides operating leverage, what are other important forms of leverage for businesses?

  11. What is the difference between the capital adequacy ratio and the leverage ratio?

  12. What are my options when I get a margin call?

  13. How does working capital management affect corporate earnings?

  14. What is considered to be a healthy accounts payable turnover ratio?

  15. What are some strategies companies commonly use to reduce their debt to capital ratio?

  16. What ratios are most commonly used to judge working capital management?

  17. How can I use the debt-to-capital ratio to evaluate a stock?

  18. What is the difference between a sunk cost and an opportunity cost?

  19. Which financial ratio best reflects capital structure?

  20. Why would I need total debt to total assets represented as a ratio, as opposed to ...

  21. How does a company's capitalization structure affect its profitability?

  22. How should investors interpret unlevered beta?

  23. What is capital structure theory?

  24. How risky are futures?

  25. After Enron, are SPVs / SPEs considered good business practice?

  26. Are there leveraged ETFs that track the financial services sector?

  27. How is EBIT breakeven affected by leverage and financing plans?

  28. How do you find the level of EBIT where EPS doesn't change?

  29. Are there leveraged ETFs that track the metals and mining sector?

  30. What does it signify about the state of a company if it has unusually high shareholders' ...

  31. How do I use software to make arbitrage trades?

  32. What is the effect of price inelasticity on demand?

  33. How do I calculate the debt-to-equity ratio in Excel?

  34. Are there leveraged ETFs that track the utility sector?

  35. Is there a downside to having a high liquidity ratio?

  36. Is debt/equity a good metric to use when analyzing utility stocks?

  37. How can I tell if a utility will be able to pay off its debt?

  38. What is liquidity risk?

  39. What does the gearing ratio say about risk?

  40. How do hedge funds determine what assets to own?

  41. Which leverage ratios are most useful for analyzing manufacturing companies?

  42. How do I unlever beta?

  43. What are the differences between gross profit and EBITDA?

  44. Can real estate agents give referral fees?

  45. How does margin trading in the forex market work?

  46. Given the below information, all of the following statements are FALSE regarding ...

  47. A customer has the following in his long margin account. Market value: $18,000, ...

  48. Use the following information about a customer’s margin account to answer the question.

  49. What is the difference between leverage and margin?

  50. What does it mean when the shares in my account have been liquidated?

  51. What are the risks of having both high operating leverage and high financial leverage?

  52. What does negative shareholder equity on a balance sheet mean?

  53. How does leverage affect pip value?

  54. Does the party loaning shares in a short sale transaction benefit in any way other ...

  55. What's the difference between a mutual fund and a hedge fund?

  56. How do speculators profit from options?

  57. What methods can be used to fund a forex account?

  58. Is it possible to buy mutual funds using a margin account?

  59. Margin accounts are established to allow investors the ability to use leverage with ...

  60. My broker just sold securities out of my account without my permission. Is this legal?

  61. How does pyramiding work?

  62. How are the interest charges calculated on my margin account?

  63. What is a margin account?

  64. How does leverage work in the forex market?

  65. I want to try short selling, but how can I sell something that I don't own?

  66. Why do you need a margin account to short sell stocks?

  67. What are the components of the risk premium for investments?

  68. How is margin interest calculated?

  69. What are the minimum margin requirements for a short sale account?

  70. What are the advantages of using a mini forex account for trading?

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