Tyco International Limited (TYC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Tyco International Limited (TYC)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Richard James who wrote (675)	11/13/1999 8:16:00 PM
From: Chuzzlewit	Read Replies (1) of 3770

Richard and Tom, Sorry if I confused anyone. If you have a specific question about the math please ask. There seemed to be so much confusion on the thread concerning the thrust of the Moody's advisory that I couldn't help myself. The whole point behind my comments is that changes in the leverage ratio (which is the ratio of debt to equity) has very little effect on the price of the stock, because the added risk is offset by the added earnings potential. The classic proof of this is an arbitrage model in which you can mimic various leverage ratios by using home-made leverage (margin) to buy stocks. Sorry again if I confused anyone. TTFN, CTC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next