Discuss alternative measures of financial leverage

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Discuss alternative measures of financial leverage. Should the market value of equity be used or the book value? Is it better to use the market value of debt or the book value? How should you treat off-balance-sheet obligations such as pension liabilities? How would you treat preferred stock?

Be sure to support your statements with logic and argument, citing any sources referenced.

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The paper is in relation to Financial Leverage and the various aspects considered while its computation viz. inclusion of cost or market value of debt or equity, treatment of pension liabilities and preferred stock. All this helps in having a proper computation of the leverage.

Reference no: EM131957082

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