If we have deflation, debt grows in value, so we must reduce debt.
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Russell Croft, managers of the Croft Value and Croft Income funds, combine low earnings multiples with other indicators, such as cash flow, book value and debt-to-enterprise value.
Deflation pushes up the real burden of debt, while the value of assets linked to that debt, such as house prices, may have to fall even more sharply in nominal terms to return to a fair level.
Inflation helps reduce the total debt stock over time, by reducing the real value of debt.
The team's percentage of debt to enterprise value of 81% is the third-highest of the majors' 30 teams.
Its balance sheet is strong, with a 19% debt to total value based on its first quarter 2010 numbers.
They owe more and the average ratio of their debt to the value of their home is about 130 percent.
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The added cash enabled the Rockies to reduce their ratio of debt to enterprise value to 19%, down from 35% when Monfort took over.
Yet its enterprise valuation (debt plus market value of common) is only 3.8 times operating income (earnings before depreciation, interest and taxes).
The table lists companies whose total price (debt plus market value of common) is less than the estimated discounted value of reserves.
Its enterprise valuation (debt plus market value of common) is only 3.8 times operating income (defined as earnings before depreciation, interest and taxes).
Alexander Hamilton, our first secretary of the Treasury, and a very good one, redeemed all of the Revolutionary War debt at par value, and he said the 'full faith and credit' of the United States must be inviolate, among other reasons because it will be necessary in a crisis to be able to borrow.
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At this point, the value of the debt falls to maybe 10% of its face value and Greece has broken all the rules of euro membership.
That suggests a restructuring of Greek sovereign debt - which would see a formal reduction in the value of that debt - is a more imminent prospect than official pronouncements by eurozone governments and EU officials would suggest.
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The broader issue is simple: the developed world has too much debt and to reduce this debt, they want to create inflation and depreciate the value of their currencies (thereby reducing the value of the debt).
When they do, the value of longer-term debt instruments will fall, while the value of bank reserves will be unchanged.
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In fact, the interest rate - or yield - on Portuguese sovereign debt has risen relentlessly, especially in the last week, as the deal to cut the value of Greek debt owned by the private sector has moved closer to a reality.
In addition, the bureau is expected to evaluate the value of debt-protection products for credit cards.
Admittedly, that includes the value of debt relief itself, and Mozambique's experience is extreme.
This phone company's enterprise multiple (market value plus debt minus cash, divided by Ebitda) is 9.
That is the ratio of enterprise value (market value plus debt less cash) to operating earnings (Ebitda).
Reducing net debt will boost equity value in the absence of any dilution from the capital raises.
The issuance of so inordinate an amount of public debt would crush the value of Japanese bonds.
In that way the trapped saver cannot respond by raising the interest rate to compensate for the falling value of debt.
At rates of economic growth above the interest rate on federal debt, the present value of both GDP and federal revenues is infinity.
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Last week rivals including Morgan Stanley also managed to squeeze out profits thanks to accounting maneuvers resulting from changes in debt-related credit value.
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Superior Well's enterprise value (market value plus debt, minus cash) is 29 times its trailing operating income (earnings before interest, taxes and depreciation), also costly.
Bondholders of BCE, the parent of Bell Canada, argued that the deal would load the company up with debt, curbing the value of their holdings.
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