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"Leverage" Financial Decisions Overview (in Hindi)
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Heena Malhotra
Believe in Conceptual Learning.

U
Unacademy user
Good to have such a teacher !! Thank you sir for uploading Calculus first 👌👌
S
no mam you doing right👍👍....pehle basics clear honge tab hi aage ke concept clear honge...nice everything...
Madam,. very clear in concept. Explanation is clear. THQ so much
G
please give lesson 2019 exam preparation
Jt
hello mam, just want to know about complete process to join this course...
Heena Malhotra
a year ago
Hello Jashan, if you are using unacademy app, Just open one video of this course and scroll down and click on the video you want to check.. I have uploaded 75 videos in course which covered almost every important topics of your syllabus.
Jt
Jashan tiwana
a year ago
mam im not using unacademy app..but im already gone through by your financial mgt videos ..that r really awesone...
Jt
Jashan tiwana
a year ago
actually i just want to know about fees structure..
Heena Malhotra
a year ago
Thank you for appreciation :) it's free of cost , you can check out any video you want :)
Heena Malhotra
a year ago
Browser m bhi scroll krne ka option hai, aap option search krke videos dekh lijiye :)
Jt
Jashan tiwana
a year ago
ok mam thanks.. mam jese apne financial management ke sabhi topic ki video dali ha.. kya app sbhi subjects ki video dalo ge??
Jt
Jashan tiwana
a year ago
like income tax,marketing nd hrm..
Heena Malhotra
a year ago
Yes, I'm working on other subjects too, aap meri profile pr jakr sabhi courses dekh skte h, Jo abhi tak maine upload kiye h :)
Jt
Jashan tiwana
a year ago
ok mam.. thank you for replying.
Heena Malhotra
a year ago
Always here to help :)
Jt
Jashan tiwana
a year ago
vese mam its strange for me u r giving free lectures..mene check keya tha kuch teachers kafi charge krte hein onine lectures ka.. apka to quality content ha ..
Heena Malhotra
a year ago
Actually, unacademy platform has both types of courses. Free and plus courses. Free courses are accessible by anyone :)
Jt
Jashan tiwana
a year ago
ok mam ..
hlo mam vry sht trick use formulas
Heena Malhotra
a year ago
Hello Naneen, I'm not able to understand your query , please explain :)
Naveen saini
a year ago
mam aapne jo formula smjaya h operating nd financial leyerage or combined leverage ka vo vry short trick thnx mam
Heena Malhotra
a year ago
Ohh, Thank you so much :) :)
Naveen saini
a year ago
ya mam welcm
  1. Financial Decisions- Leverage By Heena Malhotra


  2. Analysis of Leverage Types of Leverage (i) Operating Leverage (ii) Financial Leverages (iii) Combined Leverages Business and Financial Risk By Heena Malhotra


  3. Business Risk: o It refers to the risk associated with the firm's operations. o It is the uncertainty about the future operating income (EBIT), i.e. how well can the operating incomes be predicted? By Heena Malhotra


  4. Financial Risk::- o It refers to the additional risk placed on the firm's shareholders as a result of debt use i.e. the additional risk a shareholder bears when a company uses debt in addition to equity financing. o Companies that issue more debt instruments would have higher financial risk than companies financed mostly or entirely by equity. By Heena Malhotra


  5. Business Risk and Financial Risk o Risk facing the common shareholders is of two types, namely business risk and hnancial risk. OTherefore, the risk faced by common shareholders is a function of these two risks, i.e. Business Risk, Financial Risk By Heena Malhotra


  6. DEBT VERSUS EQUITY FINANCING O Financing a business through borrowing is cheaper than using equity. This is because: # Lenders require a lower rate of return than ordinary shareholders. Debt financial securities present a lower risk than shares for the finance providers because they have prior claims on annual income and liquidation. By Heena Malhotra


  7. o A profitable business effectively pays less for debt capital than equity for another reason: the debt interest can be offset against pre-tax profits before the calculation of the corporate tax, thus reducing the tax paid. bieation of the corporate tax, o Issuing and transaction costs associated with raising and servicing debt are generally less than for ordinary shares. By Heena Malhotra


  8. O These are some benefits from financing a firm with debt. Still firms tend to avoid very high gearing levels. O One reason is financial distress risk. This could be induced by the requirement to pay interest regardless of the cash flow of the business. If the firm goes through a rough period in its business activities it may have trouble paying its bondholders, bankers and other creditors their entitlement. By Heena Malhotra


  9. MEANING AND TYPES OF LEVERAGE O Leverage refers to the ability of a firm in employing long term funds having a fixed cost, to enhance returns to the owners. o In other words, leverage is the amount of debt that a firm uses to finance its assets. A firm with a lot of debt in its capital structure is said to be highly levered. A firm with no debt is said to be unlevered. o Leverage can occur in either the operating or financing portions of the income statement. By Heena Malhotra


  10. Profitability Statement Sales Less: Variable Cost Contribution Less: Fixed Cost Operating Profit/ EBIT Less: Interest Earnings Before Tax (EBT) Less: Tax Profit After Tax (PAT) Less: Pref. Dividend (if any) Net Earnings available to equity shareholders/ PAT No. Equity shares (N) Earnings per Share (EPS) = (PAT N) xxX Operating (xxxLevarage Combined Levarage xxxFinancial Levarage xXX By Heena Malhotra