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Alternative Definition Of Financial Leverage

Alternative Definition of Financial Leverage

According to Gitmar, “financial leverage is the ability of a firm to use fixed financial changes to magnify the effects of change in EBIT and EPS”.

finance
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FL = EBIT / EPS

Where,

FL = Financial Leverage

EBIT = Earning Before Interest and Tax

EPS = Earning Per share.

Alternative Definition Of Financial Leverage Alternative Definition Of Financial Leverage Reviewed by Blog Editor on Saturday, June 03, 2017 Rating: 5

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