What is meant by financial leverage? Identify one or more cases where leverage is advantageous.
Answer to relevant QuestionsDynamic Electronics, Inc., a successful and high-growth company, consistently experiences a favorable difference between the rate of return on its assets and the interest rate paid on borrowed funds. Explain why this company ...Would you classify the items below as equity or liabilities? State your reason(s) and any assumptions.a. Minority interest in consolidated financial statements. b. Appropriated retained earnings. c. Guarantee for product ...In computing the earnings to fixed charges ratio, what broad categories of items are included in fixed charges? What tax adjustments must be considered for these items? Can an analysis of financial statements improve on published bond ratings? Explain.What is the reason(s) why companies hire bond rating agencies to rate their debt?
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