What is the normal breakdown between the amount of debt and equity used to fund the investment?
We use a combination of debt and equity in most of our investments, but we like to capitalize our investments conservatively in order to allow for growth and provide a cushion in the case of a downturn. Therefore, depending on the nature of the business, we usually provide 35% – 50% of the total capital in the form of equity.
Related Questions
- What are the benefits of converting Dreyfus Equity Growth Fund’s investment objective from fundamental to non-fundamental?
- Why are shareholders being asked to change Dreyfus Equity Growth Fund’s investment objective?
- What types of financial instruments are used by the fund (debt, equity, combination)?
