What Does High/ Low Financial Leverage Indicate?

1.	What Does High/ Low Financial Leverage Indicate?
Answer» High financial leverage indicates the risky investment made by the company's SHAREHOLDERS. Low financial leverage indicates that management has adopted a very good APPROACH towards the debt capital. This decreases the management DECISION making on earning per share. High financial leverage indicates the risky investment made by the company's shareholders. Low financial leverage indicates that management has adopted a very good approach towards the debt capital. This decreases the management decision making on earning per share.

Answer»

High financial leverage indicates the risky investment made by the company's SHAREHOLDERS. Low financial leverage indicates that management has adopted a very good APPROACH towards the debt capital. This decreases the management DECISION making on earning per share.

High financial leverage indicates the risky investment made by the company's shareholders. Low financial leverage indicates that management has adopted a very good approach towards the debt capital. This decreases the management decision making on earning per share.

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