Internet and Leverage: Difference between pages

Revision as of 15:47, 16 March 2015

1.

Debt divided by Debt plus Equity = D / ( D + E ).

Example

If the amounts of debt and equity were equal, then leverage under this definition would be calculated as:

1 / ( 1 + 1 ) = 50%.

2.

Gearing.

Leverage is based on the same inputs, but the calculation would be:

1 / 1 = 100%.

3.

To increase the level of gearing in an operational or financial structure.

The intention of leveraging is to improve expected net results.

The consequence of leveraging is normally to increase financial risk.

Many financial disasters have been a consequence of leveraging up excessively in this way in earlier periods.

@@ Line 1: / Line 1: @@
-A wide area network (WAN) to which anyone with the appropriate hardware, software, and communication links has access.
+.
+Debt divided by Debt plus Equity = D / ( D + E ).
+'''Example'''
+If the amounts of debt and equity were equal, then leverage under this definition would be calculated as:
+/ ( 1 + 1 ) = 50%.
+.
+Gearing.
+Leverage is based on the same inputs, but the calculation would be:
+/ 1 = 100%.
+.
+To increase the level of gearing in an operational or financial structure.
+The intention of leveraging is to improve expected net results.
+The consequence of leveraging is normally to increase financial risk.
+Many financial disasters have been a consequence of leveraging up excessively in this way in earlier periods.
 == See also ==
-* [[Cloud]]
+* [[Debt]]
-* [[Cybersecurity]]
+* [[Deleverage]]
-* [[e-commerce]]
+* [[Gearing]]
-* [[Encryption]]
-* [[Federal Communications Commission]]
-* [[Internet of Things]]
+==Other links==
-* [[Internet protocol]]
+[http://www.treasurers.org/node/8012 Masterclass: Measuring financial risk, The Treasurer, July 2012]
-* [[Intranet]]
-* [[ISP]]
-* [[OTT]]
-* [[Pay-per-click]]
-* [[Telco]]
-* [[Transport Layer Security]]
-* [[URL]]
-* [[Wide area network]]
-* [[World wide web]] (www)
-[[Category:Technology]]
+[[Category:Corporate_finance]]