Remove Construction Remove Hurdle Rate Remove Leverage
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The Corporate Life Cycle: Corporate Finance, Valuation and Investing Implications!

Musings on Markets

With more mature companies, as investment opportunities become scarcer, at least relative to available capital, the focus not surprisingly shifts to financing mix, with a lower hurdle rate being the pay off.

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Data Update 6 for 2023: A Wake up call for the Indebted?

Musings on Markets

In fact, that may explain why firms that trade at low EV to EBITDA multiples are more likely to become targets in leveraged buyouts (LBOs) or leveraged recapitalizations. Business risk : Not surprisingly, for any given level of cash flows and marginal tax rate, riskier firms will be capable of carrying less debt than safer firms.