Many electric utilities have a heavily debt-laden capital structure. A number of factors have contributed to this situation, but chief among them is the theory that increased debt improves a corporation's earnings per share. This theory is derived from a relatively simple financial model which relates earnings per share, capital structure, interest costs, and income. Using a more comprehensive model, this paper shows that reducing debt as a percentage of capital structure can improve the interest coverage, earnings per share, and market price per share of electric utilities.

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Date created

• 1985

Type

• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

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11576afb39e5cd4a779a3912c119ca81

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Part of

8cc5e98280358f60c3a33cc99e75a20e

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23d738ba88f8333bc39725f9cb5bd0b8

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Collection

System Dynamic Society Records

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Collecting area

• This collection is part of the University Archives