Financial Leverage

This Category is dedicated to articles related to Capital Structure Decisions for a Company.


Pecking Order Theory

Pecking order theory is a theory related to capital structure. It was initially suggested by Donaldson. In 1984, Myers and Majluf modified the theory and made it popular.According to …

Leveraged Buyout

Meaning Of Leveraged Buyout A leveraged buyout (LBO) involves the acquisition of another company using borrowed money to match the cost of acquisition. The assets of the acquiring company, …

Financial Leverage

Financial leverage simply means the presence of debt in the capital structure of a firm. In other words, we can also call it the existence of fixed-charge bearing capital …