Question

Use of fixed interest securities in the capital structure is called

Answer 1

Answer:

sorry by mistake.....

Answer 2

Answer:

The correct answer is Financial Leverage.

Explanation:

The extent to which preferred stock and income securities being fixed in nature are used in the capital structure of the company is known as financial leverage. As per the industry standards, an entity having a financial leverage ratio of less than one is considered to be good generally. It would be easier to secure a loan in this case.