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Assets 3000000 liabilities 1750000 Equity 1250000

Financial leverage equal :- A- equity divided by assets B- assets divided by liabilities C- liabilities divided by assets D- assets divided by equity

Accounting Cost Accounting Financial Accounting CMA Costing
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Question added by Ahmed kandil , Cost Controller , Battour Holding Cpompany
Date Posted: 2015/03/12
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Mohammad Masbah Uddin Apel
by Mohammad Masbah Uddin Apel , Sr. Executive - Finance & Accounts , STS Holdings Limited

Ans: C. Liabilities / Total assets

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Financial leverage = the debt ratio or Financial leverage = liabilities ÷ assets so, choice c is the answer

Anas Dawah
by Anas Dawah , Senior Internal Auditor , Talal Abu-Ghazaleh Global (TAGI)

Financial leverage ratio   = T. Assets / common equity

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