Spending reductions across the board (not just "discretionary" spending) and a balanced budget amendment to the Constitution.
You will have to pay the debt + interest on your return to the US assuming the debt collectors have not chased you down in India already.
A major advantage is optimization of shareholders' wealth through mix of debt and equity, taking advantage of the U.S. tax system which favors debt financing by making interest deductible from income when calculating the company's federal tax liability. Low cost debt, especially when interest is low, would increase the return of equity relative to the return of assets. A disadvantage would be if the debt becomes too costly, it reduces the return of equity below the return of assets. Companies that are highly leverage in this case might find it difficult to make payments on their debt in times of trouble and also difficult to obtain additional financing from lenders.
return on capital employed (ROCE) is net income/(debt&equity) whereas return on equity is income/equity (without debt).
The debt-to-equity ratio is a very simply calculation. Just divide a company's outstanding debt at a given date (usually quarter-end or year-end) by the company's equity on that same date. So, to increase this ratio, you would need to either increase the debt balance (i.e. borrow more) or decrease the equity balance (i.e. pay a dividend). Keep in mind, while increasing the debt-to-equity ratio will increase the ROE (return on equity) for a company, it also increases risk. Additionally, most banks include covenants in their loans that limit the debt-to-equity ratio for their customers (thereby making certain that the company has an equity "cushion" should an economic downturn occur).
debt increases and GDP decreases.
Reagan raised the dept ceiling 18 times.
At the time of this writing (July, 2011), the most recent increase in the U.S. debt ceiling (to $14.3 trillion) was passed by Congress and signed into law on February 12, 2010.
Debt ceiling is the limit on how much money the US Federal government can owe.
The President cannot raise the debt ceiling. It is set by Congress.
102 times
The President cannot raise the debt ceiling. It is set by Congress.
A debt ceiling can be described as the maximum limit that company, organization, or government agency can afford to incur debt. Example sentence: My personal debt ceiling is around a thousand dollars.
The President cannot raise the debt ceiling. Only Congress can do that.
The United States debt ceiling is a debate about government spending and debt. It discusses putting limits on the amount of debt the government can be in at any time and how much money the government can spend.
The National Debt Ceiling was raised 18 times while Reagan was president.
"The United States has a debt ceiling, so that we as a nation, together with our leaders, can make an attempt to hold ourselves accountable in terms of our fiscal responsibility. The debt ceiling is also in conflict with 14th Amendment of the U.S. Constitution."
The rate of return on a security, in this case the debt, is defined by rd = rRF + Liquidity Premium + Maturity Risk Premium + Default Risk Premium Thus increasing the risk free rate (rRf) should increase the cost of debt. Hopefully that answers your question...