Aequi Acquisition Corp 00774MAZ8 Bond
ARBGUDelisted Stock | USD 10.40 0.00 0.00% |
Aequi Acquisition's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Aequi Acquisition's financial risk is the risk to Aequi Acquisition stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Aequi |
Given the importance of Aequi Acquisition's capital structure, the first step in the capital decision process is for the management of Aequi Acquisition to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Aequi Acquisition Corp to issue bonds at a reasonable cost.
Popular Name | Aequi Acquisition AER 385 29 OCT 41 |
Equity ISIN Code | US00775W2017 |
Bond Issue ISIN Code | US00774MAZ86 |
S&P Rating | Others |
Maturity Date | Others |
Issuance Date | Others |
Aequi Acquisition Corp Outstanding Bond Obligations
Dana 575 percent | US235822AB96 | Details | |
Volcan Compania Minera | USP98047AC08 | Details | |
Boeing Co 2196 | US097023DG73 | Details | |
US00775PAA57 | US00775PAA57 | Details | |
AERCAP IRELAND CAP | US00774MAG06 | Details | |
AERCAP IRELAND CAP | US00774MAE57 | Details | |
AERCAP IRELAND CAP | US00774MAC91 | Details | |
AERCAP IRELAND CAP | US00774MAB19 | Details | |
AER 385 29 OCT 41 | US00774MAZ86 | Details | |
AER 33 30 JAN 32 | US00774MAX39 | Details | |
AER 34 29 OCT 33 | US00774MAY12 | Details | |
AER 245 29 OCT 26 | US00774MAV72 | Details | |
AER 3 29 OCT 28 | US00774MAW55 | Details | |
AER 4625 15 OCT 27 | US00774MAR60 | Details | |
AERCAP IRELAND CAPITAL | US00774MAS44 | Details | |
AERCAP IRELAND CAP | US00774MAN56 | Details | |
AER 445 03 APR 26 | US00774MAL90 | Details | |
MPLX LP 4875 | US55336VAG59 | Details | |
MPLX LP 4125 | US55336VAK61 | Details | |
MPLX LP 52 | US55336VAL45 | Details | |
AECOM 5125 percent | US00774CAB37 | Details | |
Morgan Stanley 3591 | US61744YAK47 | Details | |
Morgan Stanley 3971 | US61744YAL20 | Details | |
MGM Resorts International | US552953CD18 | Details | |
AerCap Global Aviation | US00773HAA59 | Details |
Understaning Aequi Acquisition Use of Financial Leverage
Aequi Acquisition's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Aequi Acquisition's current equity. If creditors own a majority of Aequi Acquisition's assets, the company is considered highly leveraged. Understanding the composition and structure of Aequi Acquisition's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Aequi Acquisition Corp. does not have significant operations. The company was incorporated in 2020 and is based in Greenwich, Connecticut. Aequi Acquisition is traded on NASDAQ Exchange in the United States. Please read more on our technical analysis page.
Thematic Opportunities
Explore Investment Opportunities
Check out Trending Equities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Consideration for investing in Aequi Stock
If you are still planning to invest in Aequi Acquisition Corp check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Aequi Acquisition's history and understand the potential risks before investing.
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.