Question

Define financial leverage and give two examples to support your definition. short answers please

Define financial leverage and give two examples to support your definition. short answers please

Homework Answers

Answer #1

Financial leverage is use of borrowed money to finance the purchase of Assets. This will be helpful in making the company acquire the proper assets through proper debt and they will be helping the company in longer solvency and longer sustainability. These financial leverage needs to be balanced well between the benefits of interest tax shield and the risk of financial distress.

Example of two financial leverage would be using of bank loan in order to purchase the land and building and use of long term bonds in order to purchase heavy machineries for updation of technology.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain in a short paragraph and give examples 1. Define culture and shortly describe all of...
Explain in a short paragraph and give examples 1. Define culture and shortly describe all of the components of the definition – e. g. behavior, experiences, e tc. 2. Why color blindness is not a good way to fight racism? How should we approach the issue of racial inequality and racism?
Give two examples of how you can support a person’s physical wellbeing.
Give two examples of how you can support a person’s physical wellbeing.
Definition/Comparison Questions Instructions: In your own words, define the pairs of terms given below. Write in...
Definition/Comparison Questions Instructions: In your own words, define the pairs of terms given below. Write in complete sentences, stating the differences and relationships between the two terms, and give specific examples where appropriate. A complete answer usually requires four to eight sentences. a. centriole / kinetochor allele / locus RNA primer / DNA polymerase RFLPs / Southern blot analysis
What is the definition of elastic demand? How about inelastic demand? Give me some examples of...
What is the definition of elastic demand? How about inelastic demand? Give me some examples of goods that you purchase for which your own demand is elastic and some examples of goods for which your demand is inelastic.
What is the definition of elastic demand? How about inelastic demand? Give me some examples of...
What is the definition of elastic demand? How about inelastic demand? Give me some examples of goods that you purchase for which your own demand is elastic and some examples of goods for which your demand is inelastic.
What is automatic or passive protection, and provide two examples. type the answers .200 words please.
What is automatic or passive protection, and provide two examples. type the answers .200 words please.
Please answer the following questions for Nike, Inc. Either from the financial statements or notes give...
Please answer the following questions for Nike, Inc. Either from the financial statements or notes give two examples where: Reporting information is on the historical cost basis. Reporting information is on the fair market value basis
POST #4 I POST THESE QUESTIONS TWICE PLEASE DO NOT DUPLICATE YOUR ANSWERS TO BOTH POSTS...
POST #4 I POST THESE QUESTIONS TWICE PLEASE DO NOT DUPLICATE YOUR ANSWERS TO BOTH POSTS PLEASE DO NOT UPLOAD PHOTOS FOR ANSWERS, IT REALLY DOES NOT WORK FOR ME, THANKS FOR UNDERSTANDING PROVIDING EXAMPLES FOR QUESTIONS IS SO IMPORTANT, PLEASE PROVED EXAMPLE FOR QUESTIONS, THANKS Question 4 What are some of the assumption to use to determine a confidence interval for the population mean with an unknown standard deviation? Provide examples. Question 5 Define the confidence interval for a...
Q 3.5: Support your answers with an AD–AS graph. A: Can the economy be in a...
Q 3.5: Support your answers with an AD–AS graph. A: Can the economy be in a short-run macroeconomic equilibrium without being in a long-run macroeconomic equilibrium? B: Can the economy be in a long-run macroeconomic equilibrium without being in a short-run macroeconomic equilibrium?
Answer ALL questions. Please fully define your equations and provide complete explanations and I will give...
Answer ALL questions. Please fully define your equations and provide complete explanations and I will give you a thumbs up and a good comment! Thank you! 1. Explain what the “focal length” of a lens is. 2. What is the difference between converging and diverging lenses? 3. What is the relationship between the object distance and the image distance for a lens?