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But their proportion of debt to wealth fell.
CEO inside debt is also positively related to the proportion of debt used in a firm's total external financing.
The larger the proportion of debt in the capital structure (leverage), the higher will be the returns to equity.
"Every factor has its own weight," he said, pointing out that the last-mentioned factor -- the proportion of debt outstanding to credit available -- is deemed quite important.
On the other hand, the Board viewed TWA's capitalization as 'neither reasonable nor sound' since '(i ts proportion of debt to total capitalization is far too large.' Id., at 218.
Among European and American companies debt as a proportion of profits (measured by EBITDA) has returned to 2007 levels, and the proportion of debt that is short term has declined.
Similar(47)
Risk is conditioned both by the nature of the business investment and by the relative proportions of debt and equity used to finance investments.
If we really want to align the interests of executives with the providers of capital, as part of their long term incentive package, we should sell executives a sliver of the firm's debt (senior and junior in proportion to actual) stapled (permanently, so the debt can't be stripped off and sold) to a sliver of its equity (with proportions of debt and equity equal to current actual).
And a rising proportion of this debt was "empty" debt, without any corresponding real value.
Progress has been made on the overall debt burden of developing countries, with the proportion of external debt service to export revenue falling from 12% in 2000 to 3% in 2013.
As the proportion of expensive debt increases, the government's interest bill rises, potentially starting a debt snowball.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com