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Hitesh Bhasin's Marketing91 - Marketing Management And Strategy

Marketing91.com is a blog on marketing management, marketing
strategy and advertising.

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What is Debt Capacity? Definition, Calculations and Factors that affect it

Updated 2 Years Ago

By Hitesh Bhasin

What Is Debt Capacity? Definition, Calculations And Factors That Affect It

Debt capacity is the amount of debt that a company can take on without adversely affecting its financial stability. In other words, it is the maximum amount of debt that a company can safely handle.