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what is the common stock earning leverage ratio?

what is the common stock earning leverage ratio?

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A leverage ratio refers to a type of financial ratio that depicts the debt level incurred by a company against several other accounts in the income statement, cash flow statement or balance sheet. The common stock earning leverage ratio is computed as total debt divided with the common stock. It helps to evaluate the business entity's solvency and capital structure. Debt to equity ratio is computed as interest bearing liability divided with the total shareholder's equity.

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