Define the term s financial leverage?

Q: What is meant by the term financial leverage?

A: Borrowed Capital: The money which is borrowed by a company from outsiders for a specified period of…

Q: What is the Capital Asset Pricing Model (CAPM)?What are the assumptions that underlie themodel?

A: The CAPM is an equilibrium model which stipulates the association among required rates of return and…

Q: The financial leverage implications for company performance?

A: Financial Leverage means the inclusion of debt in the company's capital structure. Debt is used to…

Q: Explain the effect of issuance cost on firm value.

A: There are issues cost associated with debt and equity that has impact on  value of firm.

Q: What are the benefits and corresponding risks of Financial Investment?

A: Financial Investments are investments that are made with the expectation to receive future financial…

Q: What is Horizontal Analysis in Financial Analysis?

A: Financial statement analysis is the process of analyzing the financial statements of a company. It…

Q: Describe the Market-Value Analysis?

A: Market Value is a solid indicator of investor or shareholder capital. All things considered, what…

Q: What is optimal capital structure?

A: All resources that combine for manufacturing certain services or commodities is known as capital.…

Q: What are the two different formulas used to Calculate the degree of financial leverage (DFL)?

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Differentiate operating leverage from financial leverage.

A: Leverage is the amount of fixed costs a company has in its income statements. Greater leverage leads…

Q: Why is financial leverage is attractive

A: Introduction : In simple words, financial leverage refers to the process in which a company buys…

Q: Explain the problem of a capital-investment?

A: For the financing of capital investment, generally, the company considers operating cash flow of its…

Q: Define Capital Market Line (CML)

A: Introduction: Risk refers to the degree of volatility involved in the anticipated return on…

Q: What is Basic Calculations of Financial Leverage?  Please provide example.

A: Financial Leverage:It represents that how a company uses its debt to acquire assets. It also shows…

Q: Illustrate the method of investment risk: Investment?

A: Following are the methods of investment risk: Investment: Standard deviation: Standard deviation…

Q: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

Q: Define the term s liquidity position?

A: Definition: Liquidity: Liquidity is the capability of a company to pay the short-term liabilities…

Q: Define Capital Asset Pricing Model (CAPM)

A: The CAPM or capital asset pricing model is considered to be a popular concept in finance. The main…

Q: What is Degree of financial Leverage and Degree of combined Leverage and its importance.

A: Financial Leverage: It refers to the inclusion of debt for funding the operations of business. It is…

Q: What is financial asset market?

A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…

Q: What are the measures of investment worth based on yield? What are they called?

A: Investment worth based on yield means that an investor is expecting certain income on an investment…

Q: Explain the Leverage and the Incremental Cost of Debt with example?

A: Leverage – Leverage is a financial term it means using the debt for their financial needs and…

Q: What is the Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL) and Degree of…

A: Leverage means the use of certain fixed costs, where the firm levers up its profitability. It…

Q: What is the difference between financial leverage and operating leverage

A: Operating leverage: Operating leverage is a sign of how a corporation's costs are organized and is…

Q: Explain Financial Leverage?

A: Companies going for purchase of assets have three options for financing. They are equity, debt &…

Q: Define Seller Financing?

A: Seller financing : Seller financing is real estate agreement which means seller financing the real…

Q: What is the capital asset pricing model (CAPM)? What are the assumptions that underlie the model?

A: Capital Asset Pricing Model is the most common security pricing model used in Finance. It is…

Q: how was capital asset pricing model (CAPM) created? GIVE reference

A: Meaning CAPM Capital asset pricing model, It is created to explain the investor that he/she will get…

Q: What factors contribute to the risk of overusing financial leverage?

A: Financial leverage is the use of debt in the capital structure to acquire additional assets. Use of…

Q: What is financial leverage?

A: Capital Structure:   It refers to the combination of debt and equity that constitutes the finances…

Q: what are the benefits/risks of financial leverage?

A: Financial leverage is a condition wherein a company raises funds through the issue of additional…

Q: Define signaling theory (capital structure)

A: Capital structure: Capital structure is defined as mixture or proportion of all kinds of capital…

Q: Define Financial leverage.

A: Leverage: Leverage measures overlook the mixture of debt and equity which is required for analyzing…

Q: What is the financial meaning of each parameters and variables of the Arbitrage Pricing Theory model

A: The question is based on the concept of Arbitrage Pricing Theory mode (APT). APT is consider  a…

Q: Which are functions of financial markets? Check all that apply: O Maturity intermediation Risk…

A: Financial markets are important in the economy of country and they play very bigger role in the…

Q: Describe the investment analysis?

A: Investment analysis is defined as the process of evaluating an investment for income, risk, and…

Q: Define the term, the return on invested capital (RIC)?

A: All investments are made keeping focus on the expected returns that can be generated from it. The…

Q: Define financial flexibility.

A: