ramzes

It's important to realize that the financial leverage ratio is NOT the same as the debt/equity ratio, even if it addresses the same concept (how much debt is in the capital structure). (I messed this up a few times when I was studying for L1 as well).

Financial Leverage Ratio is what goes into the Dupont Model. A/E = (D/E+1)



Edited 1 time(s). Last edit at Friday, November 19, 2010 at 05:11PM by bchadwick.