The debt to equity ratio is a particularly important financial leverage ratio, in that it is used to calculate levered beta, which is sometimes referred to as equity beta. As the number of formulas, as well as variables, required to complete a specific formula increase, the more variance in results occur due to errors.
A Multi-Level Bill of Materials (BOM), or referred as an indented BOM, is a bill of materials that lists the components, assemblies, and parts required to make a product. It provides a display of all items that are in parent-children relationships.
CAPM, a theoretical representation of the behavior of financial markets, can be employed in estimating a companyâs cost of equity capital. Despite limitations, the model can be a useful addition to the financial managerâs analytical tool kit.