What do you mean by utility, Financial Management

Q. What do you mean by Utility?

Utility: - Financial leverage assists considerably the financial manager while devising the capital structure of the company. A high financial leverage signifies high fixed financial manager must plan the capital structure in a way that the firm is in a position to meet its fixed financial costs. Raise in fixed financial costs requires necessary increase in EBIT level. In the event of breakdown to do so the company may be technically forced into liquidation.

Posted Date: 8/5/2013 2:26:24 AM | Location : United States







Related Discussions:- What do you mean by utility, Assignment Help, Ask Question on What do you mean by utility, Get Answer, Expert's Help, What do you mean by utility Discussions

Write discussion on What do you mean by utility
Your posts are moderated
Related Questions
The capital structure of Wild West Inc. is as follows: Debts: $5,000,000 (face value) bonds with coupon rate at 8.00% and current price at par Preferred shares: $2,000,000

Q. Importance of the Cost of Capital? Importance of the Cost of Capital:- (1) Useful in Designing the Capital Structure: - The perception of cost of capital plays a very imp

Above the line deductions are certain kinds of deductions that are deducted from your income before the adjusted gross income is computed for tax purposes. Above the line deduct

Using the operation cycle and any other financial management knowlegde, discuss the applicability of such cycle to poultry business in uganda( consider broilers)

Define in the Modigliani-Miller equation (MM equation), why is the market value of the levered firm greater as compared to the market value of an equivalent unlevered firm? Th

Consistency - ACCOUNTING postulate that stipulates, except as otherwise noted in FINANCIAL STATEMENT, same accounting procedures and policies have been followed from period to peri

It is a trust developed by a married couple with the purpose of minimizing estate taxes. An A-B trust is a trust that splits into two on the death of the first spouse. It is produc

What is Business risk It is related to response of the firm's earnings before taxes andinterest, or operating profits, to changes in sales. When cost of capital is used to eval

As the CEO of PG Industries, you are hired at the pleasure of the Board of Directors, who in turn are elected by the shareholders. You are considering Project A which you are convi

Discuss the implications of the interest rate parity for the exchange rate determination. Answer: Presume that the forward exchange rate is roughly an unbiased predictor of the