Investing Glossary Debt Capacity borrow firm up point

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Investing Glossary: Debt capacity

Copyright 2010, Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.

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Term:

Debt capacity

Definition:

Ability to borrow. The amount a Firm can Borrow up to the Point where the firm value no longer increases.

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3/19/2010 - SV1