Chapter 3: Capital structure and Leverage Flashcards

(25 cards)

1
Q

Define Operating Leverage

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define Financial restructuring

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what are the different forms of Financial Restructuring

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the basic financial ratios

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define financial leverage

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what is Debt Ratio

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define Debt Restructuring

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the 2 methods of Debt Restructuring

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What happens if too much debt/equity

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How is Financial restructuring in an overleveraged firm

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are the + and - of High and Low leverage

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Define Debt-service Coverage Ratio

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Define Capital Restructuring

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How does leverage affect firms Earnings Per Share and ROE

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Define Business Risk

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Define Financial risk

17
Q

Define an underleveraged firm and its cause and effects

18
Q

Define Hedging

19
Q

What is the Trade-off theory

20
Q

Define Capital Structure and what it affects

21
Q

What is the Capital Structure theory of Miller & Modigliani

22
Q

What is the primary goal of manager and how do they achieve it

23
Q

What is home-made leverage

24
Q

What are the 4 factors influencing Capital Structure

25
Define Debt Ratings