Busıness Fınance I Deneme Sınavı Sorusu #857909

Which of the following is the correct definition of "Financial Leverage"?


the level of full and transparent information provided to users of the financial statements

the profitability ratios, especially regarding earnings per share.

the proportion of income paid out in dividends

the extent which the company uses debt in financing its assets

the ability of the company to survive over a long period of time


Yanıt Açıklaması:

Financial Leverage: The extent which the company uses debt in financing its assets. As long as the cost of debt financing is lower than equity financing financial leverage is beneficial for the company.

Yorumlar
  • 0 Yorum