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Q: Why do firms seldom adopt extremely leveraged capital structures despite the tax advantages associated with the use of debt?
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Why is free cash flow important to leveraged buyouts?

Free cash flow or FCF is important to leveraged buyouts because it helps an analyst or banker determine whether there are sufficent excess funds to pay back the loan associated with the leveraged buyout. Free cash flow is a measure of financial performance calculated as operating cash flow minus capital expenditures. FCF is important to leveraged buyouts because it helps an analyst or banker determine whether there are sufficient excess funds to pay back the loan associated with the leveraged buyout.


What are the advantages and risks of leveraged finance for investors?

One of the advantages is that leverage makes it easier for an investor to assume the amount of risk that he wants (a targeted amount of risk) as opposed to assuming the risk which is inherent in the investment product. A disadvantage is that in most cases leverage increases the cost associated with the investment, because the investor has to pay for the leverage e.g. in the form of an interest payment.


What is leveraged IRR?

A leveraged IRR is a mathematical formula used to determine the rate of your return that you are currently getting from an investment. This formula is a very complicated procedure.


Are certain industries more highly leveraged?

Yes


What are the pros and cons of a leveraged lease?

you will find this in a few days


Which firm is good leveraged or unleveraged while firm is getting profit?

leveraged firm is good because it has low risk than unleveraged firm while earning same amount of profit.


What is term for The strategy of investors who are attempting a leveraged buyout is touse debt to finance the purchase of buyout the firm's stockholders and gain control of the firm themselves?

The strategy of investors who are attempting a leveraged buyout is:


What is the definition of buying stocks with loans?

over leveraged. ------------------------ or perhaps madness!!


What does SLF mean in banking terms?

SLF = Syndicated and Leveraged Finance


A company that is leveraged is one that debt financing?

contains debt financing


Finance question - Why holding a leveraged firm's common stock could be regarded as having bought a call option on the firm's asset and explain how this is related to agency costs of debt?

Purchasing a stock itself is on the premise that the firm will do well and hence such a bullish perception can be likened to purchase of call option. However such perception is applicable for both the leveraged or non leveraged firms.


What are the 3 types of lease?

Leveraged Lease Financial Lease Operating Lease