Written with graceful simplicity, The Big Wave won the Childrenâs Book Award of the Child Study Association of America when it was first released. This ebook features an illustrated biography of Pearl S. Buck including rare images from the authorâs estate. Read on Scribd mobile: iPhone, iPad and Android.
Well, the âadvantageâ of increased financial leverage is a potentially higher return on equity. The disadvantage, on the other hand, is that the business is now riskier as it is financed with more debt (when revenue falls for unexpected reasons, there's now a whole lot of interest that still has to be paid).
The higher the fixed financial costs, the greater the financial leverage. The total leverage of the firm is the use of total fixed costsâboth operating and financialâto magnify the effects of changes in sales on EPS. Debt capital and equity capital make up a firmâs capital structure.he higher the fixed financial costs, the greater the financial leverage. The total leverage of the firm is the use of total fixed costsâboth operating and financialâto magnify the effects of changes in sales on EPS. Debt capital and equity capital make up a firmâs capital structure.