This money must be repaid by the maturity date at a specified interest rate unless it was an original issue discount purchase. The yearly amount needed to make interest and current maturities of principal payments on a bond issue. The ratio of a company's securities with fixed charges to the company's common stock equity. To calculate, divide the total amount of preferred stock and bonds by the amount of common stock equity. It is calculated by dividing total liabilities by total shareholders' equity.
Leverage is the use of borrowed money to increase the return on owners' equity.
To calculate, divide the total amount of long term debt by the total amount of shareholders' equity. Shareholder's Equity Declaration Date A specified date that the board of directors of a corporation declares and authorizes a dividend payment. At this time, the dividend becomes a corporate obligation. An expense that can be subtracted from an individual's adjusted gross income to obtain their taxable income. Examples include state and local taxes, charitable contributions and mortgage interest paid.