LEVERAGE RATIOS Definition

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LEVERAGE RATIOS measures the relative contribution of stockholders and creditors, and of the firms ability to pay financing charges. Value of firms debt to the total value of the firm.

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ACQUISITION is one company taking over controlling interest in another company. See also MERGER and POOLING OF INTEREST METHOD.

DOUBLE RULE is a double line drawn under an amount when the amounts above are totals and no other entries will be made.

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