Easy Office
LCI Learning

Financial leverage

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
06 September 2012 PLEASE TELL ME THAT HOW HIGH FINANCIAL LEVERAGE IS BENEFICIAL TO A COMPANY?
Profile Image

CA Lokesh Pokharna

Profile Image

CA Lokesh Pokharna (Expert)
07 September 2012 high financial leverage is beneficial when there is strong demand of products..means co. able to sell 100 % production.
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
07 September 2012 SORRY SIR I AM NOT ABLE TO UNDERSTAND PLEASE BE MORE SPECIFIC.
Upgrade to CAclubindia Pro. Subscribe Now!

Profile Image

CA Lokesh Pokharna

Profile Image

CA Lokesh Pokharna (Expert)
07 September 2012 financial leverage means use of debt funds in total capital structure.
total debt / shareholders equity.if your ROCE is more then interest on debt then its beneficial if there is high F.L. ratio.
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
08 September 2012 thank you.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries



Live Budget News and Updates

Trending Online Classes

view all classess
Let's Talk Money: You've Worked Hard for It, Now Make It Work for You
Click here for more bestsellers


Answer Query



Quick Links