Economy, asked by CShanmukh1999, 1 year ago

Increased financial leverage gives rise to _____ volatile eps

Answers

Answered by danielochich
2
Financial leverage is the degree to which a company uses fixed-income securities such as debt and preferred equity.

The more debt financing a company uses, the higher its financial leverage.

A high degree of financial leverage means high interest payments, which negatively affect the company's bottom-line earnings per share.

The best answer to fill in the gap is thus :

Increased financial leverage gives rise to _____ volatile eps

The best Answer is more volatile.

Answered by aqibkincsem
0
Increased financial leverage gives rise to _____ volatile eps

https://www.investopedia.com/terms/d/dfl.asp

 A ratio that measures the sensitivity of earnings on each share rising up to fluctuations in the ince of the company that in a way results in alterations of the capital structure.

The extent of financial leverage is the measure of percentage change occurring in EPS with respect to a I'm change in warming before application of taxes and interest. Mathematically,

  (61).
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