标题: Equities: Target Debt-to-Assets Ratio [打印本页] 作者: AndyNZ 时间: 2011-7-12 14:12 标题: Equities: Target Debt-to-Assets Ratio
Earnings per share − (Capital Expenditures − Depreciation)(1 − Debt Ratio) − (Change in working capital)(1 − Debt Ratio)
Can someone explain the use of the Debt Ratio here?作者: tobeornottobe 时间: 2011-7-12 14:22
By assuming a target debt ratio, we eliminate the need to forecast net borrowing. So the equation is saying that Capex (minus dep) and working capital are being financed by equity. The portion financed by debt is not included, hence no need for net borrowing.作者: zephyranalyst 时间: 2011-7-12 14:32
