The Leverage Factor by James Ardell - HTML preview
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13. - The Marginal Benefits Equation: An Experimental Model 335
The Modeled Concept, 336
The Marginal Benefits Equation, 336
Default Probability and Bankruptcy, 338
The Interest Benefits Mechanism, 339
Checking Results Against a Viable Standard, 340
Default Mechanics, 340
Strategic Implications: Financial Leverage, 341
Strategic Implications: Operating Risk, 343
Spreadsheet Constants, 344
Spreadsheet Logic, 346
Dynamic Variables, 347
Model Set Up, 348
The Process: Entry Variables, 349
The Process: Optimizing with Solver, 350
The Results: Three Examples, 350
EVA Discrepancies, 354