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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?


To: Frank A. Coluccio who wrote (4117)10/21/2001 8:27:44 AM
From: Peter Ecclesine  Read Replies (1) | Respond to of 46821
 
Hi Frank,

It is a shame that Yahoo has taken down the Leo Hinderey keynote speech, as he in fifteen minutes described how the financial markets are restructuring telecom.

Nokia this week reported their 'financial gearing' as -28% (net debt to equity ratio), the first time I've heard the term used in a telecom conference call. It is this gearing that directs a Service Provider to the debt or equity market for more money.

debt-equity ratio xrefer.com

A ratio used to examine the financial structure or gearing of a business. The long-term debt, normally including preference shares, of a business is expressed as a percentage of its equity. A business may have entered into an agreement with a bank that it will maintain a certain debt-equity ratio; if it breaches this agreement the loan may have to be repaid. A highly geared company is one in which the debt is higher than the equity, compared to companies in a similar industry. A highly geared company offers higher returns to shareholders when it is performing well but should be regarded as a speculative investment. The debt-equity ratio is now sometimes expressed as the ratio of the debt to the sum of the debt and the equity.

A Dictionary of Accounting, Oxford University Press, © Market House Books Ltd 1999

petere