What is 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 financial leverage and how does it affect a business's performance?

A: The company borrows money to acquire assets and do operations. The amount of debt a corporation has…

Q: what is financial leverage and its implications for company performance?

A: Company borrow amounts to buy assets and do business.

Q: What is financing feedback?

A: Introduction: Financing feedback is generated when interest expenditure is overestimated, reducing…

Q: The financial leverage implications for company analysis?

A: 1. Financial Leverage: To finance the New Assets management borrowed money. it is called financial…

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: What is the equity multiplier?

A: Answer: Equity multiplier is the ratio of assets to common equity ratio. Companies who have a lot of…

Q: operating

A: Operating leverage is a leverage which helps us to know the cost structure of a company & also…

Q: What do you believe is the significance of a good capital structure? What is Degree of Operating…

A: Capital structure refers to company's debt and equity mix as a means  for financing the operation…

Q: What are the advantages of balance sheet?

A: Financial Statement:   A financial statement is the complete record of financial transactions that…

Q: What is operating capital, and why is it important?

A: Answer: Companies need funds to acquire net operating assets and to run day-to-day business…

Q: What is a firm’s business risk? operating leverage? How does the operating leverage affect the…

A: A business can be defined as the entity or organization established to earn profit by providing…

Q: What are capital resources?

A: Capital resources are goods produced and used to make other goods and services. Capital resources…

Q: What is meant by positive financial leverage?  What about negative financial leverage?

A: Leverage -It refers to the use of source of funds  for which the firm has to pay a fixed cost.

Q: What means Finance?

A: The term finance means the management of cash and incorporates activities like, projecting, savings,…

Q: What is financial engineering?

A: Answer: Financial engineering is a process of solving problems and financial problems by using…

Q: How can an unlevered firm uptain financial leverage

A: Unlevered firm is a firm with no debt in its capital structure. It does not have any financial…

Q: Why is there a positive leverage from use of debt? How can we tell that?

A: Positive leverage: Leverage is the concept of investment by using the borrowed funds. Positive…

Q: How does operating leverage affect business risk?

A: If an organization has high fixed expenses or cost, and if an organization experiences issues…

Q: What is operating capital?

A: Introduction: In any business, operating capital is the most important asset that enables a company…

Q: Why is financial leverage is attractive

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

Q: What is investor-supplied capital?

A: A business might make a return on its invested capital that surpasses the cost of that capital.

Q: How do economies of scale and lumpy assets affect financialforecasting?

A: Economies of scale are cost advantages reaped by companies when production becomes efficient.…

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: Define the term s financial leverage?

A: Financial leverage means buying the asset by taking the debt. The company always uses leverage…

Q: What is the capital structure

A: The capital structure was its unique mixture of equity and debt that a business uses to fund its…

Q: What is capital structure and why it is important?

A: Introduction: While selecting a capital structure main motive of the company is shareholders wealth…

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: What is capital

A: Capital is the value of money which is invested in the organisation for making the financial…

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 investor-supplied operating capital?

A: Investor-supplied operating capital is the capital that is provided by the equity shareholders and…

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 are the benefits/risks of financial leverage?

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

Q: What is finance

A: Finance brings a business to life. Finance is important for every part of a firm's operations.…

Q: Explain seller financing?

A: Seller financing is the term used in real estate deals when the buyer does not approach any…

Q: Define Financial leverage.

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

Q: What is e Direct Investment?

A: Direct Investment is an important concept in the world of finance. Direct investment is also…

Q: What is net operating capital?

A: Operating capital is referred as the cash used for day to day activities in companies. Operating…

Q: What happens to the costs of debt and equity when leverageincreases? Explain.

A: Introduction: The term leverage is nothing but using borrowed funds as a source of funding when the…

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.