Financial leverage means
Financial leverage refers to the use of debt or borrowed capital to increase the potential return on investment. By using debt capital, a company can increase the amount of funds available to it for investment, which can lead to higher profits if the investments are successful. However, financial leverage also increases the risk of loss because the borrowed funds must be repaid regardless of whether the investments are successful. Therefore, financial leverage involves a trade-off between potential returns and increased risk.
Use of cash to underrate a capital expenditure in an organisation involves an outflow of cash. This transaction will be reflected in the Cash Flow State...
An annuity that starts at a predetermined date in the future is called as:
What does Standard Costing help in?
What is the amount which is allowed as standard deduction under section 16 from Gross salary while computing the Income under head salary?
What is the significance of GeM Analytics in the Government e-Marketplace?
The value of supply should include:
How much deduction under section 80TTA of Income Tax Act is allowed?
What is the journal entry for charging Depreciation under Cost Method?
Shyam Ltd. acquired a new machinery for ₹ 1,00,000 that is depreciable at 20% as per AS 6 WDV method. The machine has an expected life of 5 years with...
Goods costing ₹ 1,00,000 were insured for ₹ 50,000. Out of these goods, ¾ are destroyed by fire. The amount of claim with average clause will be: