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Characteristics of High Leveraged Industries
Faith, America
A highly geared industry will typically face high debt...
I wonder, are there any other characteristics of such sectors?
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Success or Debt is Up to YouElena Eretenko, United Kingdom High leverage does not encourage "extremely large positions", but greed does. So, I think that success or debt is up to you — your choices, your actions, your behaviours and money management. |
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Trade-off Theory of Capital StructureManoj Jayale, Manager, India Before answering to this question, one has to look at trade-off theory of capital structure: There is marginal benefit up to the optimal level of debt, but beyond that, the company might go into bankruptcy and face the cost of that.
So one has to optimize the overall value while choosing the debt component in its financing. |
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