Iβm confused. You mentioned that the lower is debt-to-equity ratio the better. But at the same time you say that preferred values are βno lower than 0.5 - ideally 1+β. If the ratio is 1+ it would mean the companyβs debt is greater or equal to its shareholder equity. Is that a typo?

Yes, that is a typo, thanks for letting me know, Luke!

What I meant to write is that the debt to equity should ideally be below 1. This will of course depend on the business, but as a general rule of thumb this applies.

Iβm confused. You mentioned that the lower is debt-to-equity ratio the better. But at the same time you say that preferred values are βno lower than 0.5 - ideally 1+β. If the ratio is 1+ it would mean the companyβs debt is greater or equal to its shareholder equity. Is that a typo?

Yes, that is a typo, thanks for letting me know, Luke!

What I meant to write is that the debt to equity should ideally be below 1. This will of course depend on the business, but as a general rule of thumb this applies.

I thought so. Thank you for clarification and also for amazing content!

Thank you, Luke! Means alot :)

Thank you for yet another great article!

Thank you so much P K. Your comments mean a lot!