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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.
Weighted average Cost of capital for Lavi Ltd. is 12%. Lavi Ltd. has issued equity worth Rs. 45 lakhs, 5% debt worth Rs. 15 lakhs and 6% preference sha...
Minimum Average Maturity Period for External Commercial Borrowings (barring certain exceptions) would be of:
Which of the following are part of Market Infrastructure institutions?
Which country is the largest importer of leather and leather products from India during April-August 2022?
If income increase, the investment will ______
Consider the following statements and state which among the following are the correct statements for Nidhi companies?
A. Nidhi companies can borr...
What is the rule regarding the appointment of a new trustee under the Indian Trusts Act, 1882?
________ has permitted AD Category-I banks to remit advance payment on behalf of Qualified Jewellers for import of gold through India International Bul...
A company had EBIT of Rs.3,70,000. The interest expense was Rs.45,000. The tax rate is 30%. The company paid Rs.31,000 dividend. What is the retention ...
Training and development of the employees is a management function which comes under _________.
