What is financial risk?
The added volatility debt imposes on equity returns: magnified gains and losses. Indicated by DCR and LTV; managed with moderate leverage and fixed-rate debt. The equity dividend rate is a return measure, not a measure of financial risk.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.