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Q. > Please Help: financial mangment
whay is leavrage
2 Answers
answered Jun 10, 2012 by Vikash Kumar Jha , Cuttack
The degree to which an investor or business is utilizing borrowed money. Companies that are highly leveraged may be at risk of bankruptcy if they are unable to make payments on their debt; they may also be unable to find new lenders in the future. Leverage is not always bad, however; it can increase the shareholders' return on investment and often there are tax advantages associated with borrowing. also called financial leverage.
answered Jun 10, 2012 by Rishabh Upadhyay , Chandigarh
?? kindly clarify your query
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Arihant
10-Jun-2012 , 11:09:01 amWhat is this?
SHIKHA SONI
10-Jun-2012 , 03:58:46 pmthe term leverage refers to advantage gained for any purpose. but in financial analysis, leverage is used by business firms to quantify the risk- return relationship of different alternative capital structures