Some corporations debtequity targets are expressed not as a debt ratio but as a target debt rating

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Some corporations’ debt–equity targets are expressed not as a debt ratio but as a target debt rating on the firm’s outstanding bonds. What are the pros and cons of setting a target rating rather than a target ratio?

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Principles Of Corporate Finance

ISBN: 9780077398040

10th Edition

Authors: Richard Brealey

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Question Posted: Jul 31, 2024 03:00 AM

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Some corporations debtequity targets are expressed not as a debt ratio but as a target debt rating

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Principles Of Corporate Finance

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