Financial leverage is one of the best ways in which company increases its profit is through. Financial leverage uses debt instruments so that the anticipated level return on the company's equity would increase. The level of financial leverage of a certain company is determined by getting the total value of debt and the equity and the ratio of debt. The level of financial … [Read more...]
The Difference Between Good Debt and Bad Debt
Bad debt is debt that makes you poor. Bad debts are expenses or liabilities that do not put any money in your pocket each month. Bad debt is, in every case we could think of, consumer debt. Most of the items you would consider putting on your credit card would fall into this catagory. Good debt, when understood and managed properly, is debt that makes you wealthy. Wealthy … [Read more...]