The GIGABYTE GA-EX58A-EXTREME was designed from the ground up to unleash the awesome power of the new Intel(R) Core(TM) i7 processors and is the industry's first motherboard to feature a cutting edge 24 phase power VRM design to deliver the smoothest power delivery for the CPU, giving extreme users unparalleled overclocking ability and the lowest temperatures to reach maximum performance levels.
<br /><br /> As the financial leverage increases, the risk to banks and other lenders increases because of the higher probability of bankruptcy. <br /><br /> As the financial leverage increases, the risk to stockholders increases because greater losses may be incurred if the company goes bankrupt. As the financial leverage increases, the risk to stockholders increases because the higher leverage will cause greater volatility in earnings and greater volatility in the stock price. As the financial leverage increases, the breakeven point of the company increases. The company now has to sell more of its product (or service) in order to break even. As the financial leverage increases, the risk to banks and other lenders increases because of the higher probability of bankruptcy. As the financial leverage increases, the risk to stockholders increases because greater losses may be incurred if the company goes bankrupt.
See also debt management ratio, debt-to-equity ratio. Case Study Financial leverage results from utilizing debt to finance assets. The greater the ratio of funds contributed by creditors compared to funds contributed by stockholders, the greater a firm's financial leverage.Financial leverage magnifies changes in net income compared to changes in operating income.ase Study Financial leverage results from utilizing debt to finance assets. The greater the ratio of funds contributed by creditors compared to funds contributed by stockholders, the greater a firm's financial leverage.