Description
Hi, Class,
Speaking of leverage, shareholders tend to watch the financial statements and other public information closely. If the level of debt gets too large for their comfort, they may decide to sell their shares. This is particularly true of institutional investors, who have their own analysts looking at the companies all the time. So, there is a certain level of debt a company can carry before the shareholders start to worry too much. Remember, if a company is dissolved, the debt holders get paid before the equity holders, if there is anything left for the equity holder.
Explanation & Answer
Review
Review
24/7 Homework Help
Stuck on a homework question? Our verified tutors can answer all questions, from basic math to advanced rocket science!
Similar Content
Related Tags
Death Of A Salesmen
by Arthur Miller
2001 A Space Odyssey
by Arthur Clarke
Pachinko
by Min Jin Lee
The Dispossessed
by Ursula Kroeber Le Guin
Team of Vipers
by Cliff Sims
And Then There Were None
by Agatha Christie
The Hunger Games
by Suzanne Collins
Slaughterhouse Five
by Kurt Vonnegut
Bridge to Terabithia
by Katherine Paterson