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- Title
PROTECTING ALL CORPORATE STAKEHOLDERS:FRAUDULENT TRANSFER LAW AS A CHECK ON CORPORATE DISTRIBUTIONS.
- Authors
FOX, IRINA
- Abstract
"Give me a place to stand, and [with a lever] I will move the whole world[]," boasted Archimedes, highlighting the power of leverage.¹ In the context of corporate finance, leverage allows a company to use borrowed money to turn a profit by taking advantage of lower interest rates.² The lever, or an infusion of "cheap" debt money, often permits a business to grow revenues by expanding operations or turn larger profits off of working capital.³ Not all borrowing empowers one to move the whole world though, and "a place to stand" requires maintaining a healthy financial condition and a robust debt-to-equity ratio.4
- Subjects
ARCHIMEDES, ca. 287 B.C.-212 B.C.; CORPORATE finance; INTEREST rates; CORPORATE profits; FINANCE
- Publication
Delaware Journal of Corporate Law, 2020, Vol 44, Issue 1, p81
- ISSN
0364-9490
- Publication type
Article