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Use of Financial Leverage Financial leverage is the extent to which fixed-income securities and preferred stock are used in a company’s capital structure.
We analyze Strategy as a structurally leveraged Bitcoin vehicle, examining its NAV premium, regulatory positioning, and capital structure optionality driving both opportunity and risk.
Learn how capital structure theory relates to financial management and the methods in which companies attempt to raise capital and market values.
Natural Resource Partners has improved its capital structure and enjoys cost differentiation benefits. Find out if NRP stock is a buy.
The debt-to-equity ratio is a great way to assess a firms capital structure and to evaluate the risks it faces should the economy slow down or the company's revenues drop.
This move aims to simplify the company’s capital structure and leverage exemptions under federal securities law, offering a more direct equity stake to its current warrant holders.
A capital structure theory based on corporate control considerations is presented. The optimal debt level balances a decrease in the probability of acquisition against a higher share of the synergy ...
Abstract This article examines the interaction between capital structure and advertising competition. Using a sample of firms that raise significant amounts of capital, we find that firms whose ...
This paper examines the impact of thin capitalization rules that limit the tax deductibility of interest on the capital structure of the foreign affiliates of US multinationals. We construct a new ...
The amount of debt and equity that makes up a company's capital structure has many risk and return implications. Learn how financial leverage can impact profits.