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debt capacitynoun [C or U]

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FINANCE a ​measurement of the ​amount of ​money that a ​person or ​company can ​borrow and ​pay back during a particular ​period without any ​financial difficulty: Changes in ​revenue and ​interestrates can affect the ​value of a ​firm and its ​optimaldebtcapacity.
(Definition of debt capacity from the Cambridge Business English Dictionary © Cambridge University Press)
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