The role of financial leverage in magnifying the return of the shareholder is based on the assumptions that the fixed charges fund. A company increases its leverage because it can invest in business operations without increasing its equity. Leverage is not always bad, however it can increase the...

Investors invest their savings for the purpose of getting more money in order to finance their future consumption. Investment decisions are made with the expectation of earning certain rate of return and the actual return earned by the investor may differ from it. Investors provide more emphasis...