ON CORPORATE SOCIAL RESPONSIBILITY OF ISLAMIC FINANCIAL INSTITUTIONS BY: SAYD FAROOK
ON CORPORATE SOCIAL RESPONSIBILITY OF ISLAMIC FINANCIAL INSTITUTIONS
Home > Categories > Studies in Islamic Economics > Moral Economy of Islam > ON CORPORATE SOCIAL RESPONSIBILITY OF ISLAMIC FINANCIAL INSTITUTIONS BY: SAYD FAROOK
Moral Economy of IslamSocial & Environmental Feasibility StudiesStudies in Islamic Economics
Can you expand a litlte bit on the 2nd concept of leverage you introduced (D:E), and how it relates to the definition you spoke about at length here (A:E)? Mechanically, I understand you can calc it (A=L+E), and come up with 10:3 (A:E) from 7:3 (D:E). But intuitively, a 10:3 (3.3:1) Assets:Equity ratio makes sense, coz you know you will be insolvent if 1/3rd of your assets go bad. How/where does the D:E ratio help us, intuitively? And if it doesn’t, why don’t ppl exclusively use A:E?Thanks!