Corp: DOL

better

is it lower the better? Thanks.

troymo

CFA Candidates

Rank: 2

UID: 223438
帖子: 280
主题: 8
注册时间: 2011-7-11
最后登录: 2016-4-19

4^#

发表于 2011-7-13 16:53 | 只看该作者

agree it all depends...if my DOL is 2.5 and my WACC is 8% while company B's DOL is only 1.5 but their WACC is 12%, i am better off despite having higher leverage

TOP

DSquaredSlim

CFA Candidates

Rank: 2

UID: 223422
帖子: 295
主题: 5
注册时间: 2011-7-11
最后登录: 2014-8-4

3^#

发表于 2011-7-13 16:52 | 只看该作者

yes, the lower the better

the lower DOL, the less volatile EBIT to the change of sales.

TOP

Pegasus2008

CFA Candidates

Rank: 2

UID: 217794
帖子: 294
主题: 142
注册时间: 2011-5-24
最后登录: 2012-9-12

2^#

发表于 2011-7-13 16:52 | 只看该作者

lower DOL -> lower risk -> lower potential return

so define "better" first..

TOP

返回列表

Corp: DOL

[收藏此主题] [关注此主题的新回复]

[通过 QQ、MSN 分享给朋友]