SCN-2 “Financial Leverage”

SCN-2 “Financial Leverage”

Hello Readers,

Welcome to the SCN Series.

Today’s Topic is: Financial Leverage

It basically relates to process of borrowing capital i.e. the debt and equity securities by the company. The more the debt, the more is the financial leverage.

Higher financial leverage means higher interest payments by the company which is considered as little bit risky in terms of the growth of the company.

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