HomeDefinitionsCompareDebt Optimum Leverage RatioThe financial definition for Optimum Leverage Ratio:The borrowing level that maximizes the value of the firm. The cost of capital to the firm is minimized at that same level. Similar MatchesDebt leverageDebt leverageAmplification of the return earned on equity when an investment or firm is financed partially with borrowed money. Financial leverageFinancial leverageUse of debt to increase the expected return on equity. Financial leverage is measured by the ratio of debt to debt plus equity. Financial leverage clienteleFinancial leverage clienteleA group of investors who have a preference for investing in firms that adhere to a particular financial leverage policy. Further SuggestionsHighly leveraged transaction (HLT)Homemade leverage Leverage Leverage clientele Leveraged company Leveraged equity Leveraged investment company Click to compare definitions of Optimum Leverage Ratio Click to view definitions beginning op |