Tag Archives | Financial Leverage

Financial Leverage: Impact, Degree and Limitations

After reading this article you will learn about Financial Leverage:- 1. Impact of Financial Leverage 2. Degree of Financial Leverage 3. Significance 4. Limitations. Impact of Financial Leverage: The financial leverage is used to magnify the shareholders earnings. It is based on the assumption that the fixed charges/costs funds can be obtained at a cost lower than the firm's rate [...]

By |2016-06-28T09:28:15+00:00June 28, 2016|Financial Leverages|Comments Off on Financial Leverage: Impact, Degree and Limitations
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Financial Leverage: Meaning, Types and Degree

After reading this article you will learn about Financial Leverage:- 1. Meaning of Financial Leverage 2. Types of Financial Leverage 3. Degree 4. EBIT-EPS Analysis. Meaning of Financial Leverage: Financial leverage may be expressed when the residual net income (earnings after interest and taxes and preference dividend) varies not in proportion with operating profit (EBIT). This leverage reveals the changes [...]

By |2016-06-18T06:57:31+00:00June 18, 2016|Financial Leverages|Comments Off on Financial Leverage: Meaning, Types and Degree
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