The long-term consequences of breaching the debt cap are even more serious.
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The government borrows money to make up the difference between what it pays and what it takes in, and the debt ceiling is a cap set by Congress on the amount of debt the federal government can legally borrow.
But they are keeping a close eye on what you might call the total price -- debt plus market cap of common.
Long term debt to total cap is 52%.
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The enterprise value multiple (market cap plus debt, divided by operating income) is a cheap 4.9.
Its enterprise value (market cap plus debt minus cash) is 7.5 times operating income (Ebitda, that is).
Euro aspirants must show that they can keep their budget deficits below 3% of GDP and cap their debt ratio at 60%.
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With a trailing multiple of enterprise value (market cap plus debt minus cash) to operating income of 14, giant Comcast is cheaper than its smaller, slower-growing peers.
Google's enterprise multiple, the ratio of market cap plus debt to operating earnings (Ebitda, that is), is 33, compared with an industry average of 18 (where Yahoo is).
For the soon-to-merge German utilities Viag and Veba, both of which trade at an enterprise value (market cap plus debt) of less than six times operating income, government threats to shut down nuclear plants are enough to scare away investors--both financial and strategic--no matter how cheap the stocks.
The debt brake is supposed to cap the government "structural" deficit at 0.5% of gross domestic product.
Once a client has referred themselves to CAP, a debt advisor from the local centre visits the client in their home to draw up a debt repayment plan.
Still, the deal has only postponed by two months negotiations over spending cuts and the government debt ceiling - a legal cap on its total borrowing set by Congress.
The cap applies to debt owed to the public (anyone who buys U.S. bonds) plus debt owed to federal government trust funds such as those for Social Security and Medicare.
Just before the New Year, the US Treasury Secretary Tim Geithner indicated that the federal government would run up against the debt ceiling - a legal cap on its total borrowing set by Congress - by the end of February.
To sell its debt subject to the yield-cap, the bank will have to persuade informed investors of this.
Only one government, Argentina's, appears to rely on this sort of mechanism (and it has balked at setting a yield-cap on the subordinated debt).
Monthly-dividend payers can be concentrated in the same sector, may have high correlations during a bear market, and are usually small or mid-cap securities with larger debt obligations.
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Selling for a ratio of six times enterprise value (market cap plus long-term debt) to EBITDA cash flow (earnings before interest, taxes, depreciation and amortization), Cemex looks cheap.
Comparative ratios demonstrate nicely how EV works better than market cap for assessing companies with differing debt or cash levels or, in other words, differing capital structures.
All that said, when Congress and President Obama finally reach a debt limit deal sometime this summer, some form of cap probably will be included in the package.
Instead, these investments would rely more heavily on active management--things like emerging market equity and debt funds, domestic high-yield bonds, small cap equities, real estate and private equity.
Barrick in particular, Deutsche warns, carries a higher debt load and could be forced to issue equity in order to meet cap-ex requirements without increasing that burden.
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While concerns of debt contagion are still flaring which could cause some risk aversion and thus a cap on the upward potential for the pound, at least there has been a bit of breathing room created.
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It invests in small to mid-cap companies in the developing world that have a few hundred million in debt, not billions.
Right now, investors are scooping about value finds in large cap European companies in Germany and France, primarily, and buying distressed debt the Central Banks will keep the floor steady underfoot.
Investors heard every reason to be in dividend-paying large-cap U.S. stocks last year as the equity market dropped sharply amid debt crises both domestically and abroad.
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