Sentence examples for relative to equity from inspiring English sources

An even bigger problem is the favourable tax treatment of debt relative to equity.

But in banking we limit leverage (debt relative to equity) through regulation while encouraging leverage through the tax code.

We also find that the loss heuristic has an impact on the choice between debt and equity in that loss firms issue less debt relative to equity.

(We allow tax deductibility of interest payments but not payments to equity holders, so debt is subsidized relative to equity through the tax code.

Professors Modigliani and Miller made an important point — an increase in leverage, by itself (i.e., more debt relative to equity in the funding of a firm) does not create value.

The idea — already being applied by some European countries and further developed by some of my former colleagues at the International Monetary Fund — is based on the premise that a high level of borrowing relative to equity is a form of pollution, creating negative spillovers for the rest of the economy.

Pay close attention to where commodities are relative to equities right now.

Nobody gets any richer long these two commodities relative to equities.

This somewhat arbitrary example illustrates that relative to equities, investment-grade credits have more downside than upside potential.

"A financial institution with a lot of equity can absorb unexpected losses, whereas one with too much debt relative to its equity will fail in the face of financial stress," the letter reads.

Deep because banks hold a lot of debt relative to their equity (they are highly "leveraged").