FINANCIAL LEVERAGE
  Definition
  
This ratio evaluates a firm's debt position in relation to its owners' equity. It is an indicator of how much debt a firm can incur and still cope without financial difficulty.

  Calculation Rules
  
[Total Interest bearing debt + Redeemable preferred shares + Preferred shares]

[Total equity - Redeemable preferred shares - Preferred shares]

  Reference
  
Total debt to Equity
Total interest bearing debt

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