Financial risk The variability or uncertainty of a firms earnings per share (EPs) and the increased probability of insolvency that arises when a firm uses financial leverage
Financial Risk • The variability or uncertainty of a firm’s earnings per share (EPS) and the increased probability of insolvency that arises when a firm uses financial leverage
Financial risk The variability or uncertainty of a firms earnings per share (EPs) and the increased probability of insolvency that arises when a firm uses financial leverage. Stock- EBIT> FIRM EPS holders
Financial Risk • The variability or uncertainty of a firm’s earnings per share (EPS) and the increased probability of insolvency that arises when a firm uses financial leverage. EBIT FIRM EPS Stockholders
Financial risk The variability or uncertainty of a firms earnings per share (EPs) and the increased probability of insolvency that arises when a firm uses financial leverage. Stock- EBIT> FIRM EPS holders
Financial Risk • The variability or uncertainty of a firm’s earnings per share (EPS) and the increased probability of insolvency that arises when a firm uses financial leverage. EBIT FIRM EPS Stockholders
Financial Leverage TThe use of fixed-cost sources of financing(debt, preferred stock) rather than variable-cost sources (common stock)
Financial Leverage • The use of fixed-cost sources of financing (debt, preferred stock) rather than variable-cost sources (common stock)
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