Financial Leverage Firm Value Implications
This graph illustrates a theoretical firm value maximizing curve when it comes to a debt-to-equity ratio. All this means is that each organization has the ideal balance between debt and equity, and finding the 'sweet spot' is a useful strategic aspect of financial leverage decisions.
This graph illustrates a theoretical firm value maximizing curve when it comes to a debt-to-equity ratio. All this means is that each organization has the ideal balance between debt and equity, and finding the 'sweet spot' is a useful strategic aspect of financial leverage decisions.
Source
Boundless vets and curates high-quality, openly licensed content from around the Internet. This particular resource used the following sources:
"TradeOff.png."
https://upload.wikimedia.org/wikipedia/commons/7/79/TradeOff.png
Wikimedia
CC BY-SA 3.0.
