Characteristics of High Leveraged Industries


 
Financial Leverage > Forum Log in

Characteristics of High Leveraged Industries
Faith, America
A highly geared industry will typically face high debt...
I wonder, are there any other characteristics of such sectors?
 

 
Success or Debt is Up to You
Elena Eretenko, United Kingdom
High leverage does not encourage "extremely large positions", but greed does. So, I think that success or debt is up to you your choices, your actions, your behaviours and money management.
 

 
Trade-off Theory of Capital Structure
Manoj Jayale, Accountant, India
Before answering to this question, one has to look at trade-off theory of capital structure: There is marginal benefit up to the optimal level of debt, but beyond that, the company might go into bankruptcy and face the cost of that.
So one has to optimize the overall value while choosing the debt component in its financing.
 

 







 

  Do you wish to study further? You can learn more from the summary, forum, discussions, lessons, courses, training, instructions, expert tips, best practices and education sources. Register.  


Special Interest Group Leader

You here


More on Financial Leverage
Summary
Forum
Best Practices

Expert Tips

Resources

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2017 12manage - The Executive Fast Track. V14.1 - Last updated: 18-8-2017. All names tm by their owners.