The manner in which a transaction is structured, and the related components of that structure, such as an Asset Purchase or a Stock Purchase . Debt Ratios Ratios that indicate the extent to which debt is being used and how it relates to a company's operations. A high ratio indicates higher risks and perhaps higher returns. Examples include, Debt to Equity , debt to total assets, and fixed charge coverage.
Debt ratios are typically important to lenders.
Debt to Equity Ratio Indicator of Financial Leverage or how much debt a company has in relation to Stockholders' Equity . Derived by dividing long-term debt by Stockholders' Equity . A series of regular consecutive payments or receipts of equal amount that begins at some time period in the future. The rate used to determine the present value of a stream of future cash flows. The discount rate is calculated based on the Required Rate of Return after taking into account the riskiness and timing of the future cash flows.