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A Refresher on Debt-to-Equity Ratio

Harvard Business Review

In fact, analysts and investors want companies to use debt smartly to fund their businesses. That’s where the debt-to-equity ratio comes in. What is the debt-to-equity ratio? “It’s a simple measure of how much debt you use to run your business,” explains Knight.

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End the Religion of ROE

Harvard Business Review

Financial managers, supported by their bankers, increased their debt-to-equity ratios until capital requirements were imposed—oops, we mean until there was a catastrophic financial crash and a depression. Therefore: who needs new technology more than the poor? Then banking regulations were imposed.

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