What does high/ low financial leverage indicate?
Submitted by: AdministratorHigh financial leverage indicates the risky investment made by the company's shareholders. Low financial leverage indicates that management has adopted a very good approach towards the debt capital. This decreases the management decision making on earning per share.
Submitted by: Administrator
Submitted by: Administrator
Read Online Capital Structure Job Interview Questions And Answers
Top Capital Structure Questions
☺ | What is Net operating income (NOI)? |
☺ | What is Trade-off theory? |
☺ | What is Traditional approach and Net income (NI) approach? |
☺ | What is Risk Principle? |
☺ | Explain Financial Leverage. How is it calculated? What does high/ low financial leverage indicate? |
Top Finance and Accounts Categories
☺ | MBA Finance Interview Questions. |
☺ | Bank Teller Interview Questions. |
☺ | Capital Market Interview Questions. |
☺ | Bank Reconciliation Interview Questions. |
☺ | Cashier Interview Questions. |