Leverage is that portion of the fixed costs which represents a risk to the firm. Operating leverage, a measure of operating risk, refers to the fixed operating costs found in the firm’s income statement. Financial leverage, a measure of financial risk,... 

Inadequate provision for the maintenance of property, plant, and equipment detracts from the long-term earning power of the firm. If obsolete assets are not replaced and repairs not properly made, breakdowns and detracted operational efficiency will result.... 

The corporation financial manager is concerned with selecting the best possible source of financing based on the facts of the situation. This post describes various circumstances in which a particular financing source is most suited.   1. Issuing Debt...