Higher FL is related the use of:
A. Higher Equity
B. Higher Debt
C. Lower Debt
D. None of the above
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The Correct Answer for the given question is option B. Higher Debt
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Answer Explanation for Question: Higher FL is related the use of:
A financial leverage refers to the presence of debt in the capital structure of a company. This can also be referred to as the fixed cost bearing source of funds used by a company as part of its capital structure. It could include debts, preference shares, etc. An organization’s degree of financial leverage increases with the amount of debt financing it uses.
Which one of the following statements concerning financial leverage is correct?
(Founder of Management Notes)
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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