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One advantage of having it can increase the shareholders' return on their investment and often there are tax advantages associated with borrowing. However, the level of return depends upon the state of the industry's economy. When the economy is depressed, sales and profit margins are low and the firms earn a low percent on assets, and when the economy is at a normal or even better condition the return on assets are at a greater percent...
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However, the level of return depends upon the state of the industry's economy. When the economy is depressed, sales and profit margins are low and the firms earn a low percent on assets, and when the economy is at a normal or even better condition the return on assets are at a greater percent. (Essentials 149)
Leverage of Fanancies can incresse the profit of the company...
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