LEVERAGED RECAPITALIZATION
A corporate strategy by which a company will borrow a significant sum of money. Using the borrowed fund, the company will pay a large cash dividend to existing shareholders and/or repurchase own stock shares, making the firm less attractive to hostile takeover target. This strategy usually involves selling the equity and borrowing or refinancing the debt.
This leads to asset and/or liability restructuring, where the firm’s liabilities are increased and equity is decreased. In mergers and acquisitions, these are often called shark repellents, since these are designed to fend off unwanted takeover attempts. Also known as leveraged recap.
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Liquidity Adjustment Facility
A tool in monetary policy where banks are allowed to borrow money through repurchase agreements, and to respond to liquidity pressures. The governm ...
Data Warehousing
Electronic storage of information in a business or corporation. It should be secure, reliable and easy to retrieve and manage. It originated in 198 ...
One-Tailed Test
A statistical test where the critical area of a circulation is one-sided so that it is either less than or greater than a specific value, but not b ...
Less-than-Truckload
A shipping service that carries small loads of freight, weight between partial and full truckload. The service is being offered by many large and n ...
Original Cost
It simply refers to the total cost associated in buying an asset.
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