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

Musings on Markets

The "Right" Financing Mix Is there an optimal mix of debt and equity for a business? The answer is yes, though the payoff, in terms of value, from moving to that optimal may be so small that it is sometimes better to hold back from borrowing. Do companies optimize financing mix?

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Distressed Debt Hedge Funds: How to Become a Vulture Capitalist

Brian DeChesare

The company still pays interest on the full $1000 and must repay it upon maturity, but you can buy the issuance at a steep discount because there’s a significant chance of default (see: book value vs. market value vs. face value ). A sharply declining stock price does not necessarily mean a company is “distressed.”

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