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Definition of financial leverage?

Answers were Sorted based on User's Feedback



Definition of financial leverage?..

Answer / n v nayak

Capital consists of own funds and borrowed funds. Financial
leverage refers to the ratio between the two.A highly
leveraged company is one which has large borrowings in
relation to owned capital

Is This Answer Correct ?    8 Yes 0 No

Definition of financial leverage?..

Answer / sampath.s

financial leavarege means fixed financing cost by the firm
is called F.L.

Formula=EBIT/PBT

Is This Answer Correct ?    4 Yes 1 No

Definition of financial leverage?..

Answer / praveen

In finance, leverage is a general term for any technique to multiply gains and losses.[1] Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives.

Is This Answer Correct ?    0 Yes 0 No

Definition of financial leverage?..

Answer / guest

"The term financial leverage is the relationship b/w earing
before interest&tax and earing per share.

Is This Answer Correct ?    11 Yes 12 No

Definition of financial leverage?..

Answer / nitish arora

financial leverage iz th euse of dept wid the equity capital so as to earn more profit.

Is This Answer Correct ?    1 Yes 2 No

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