Dear All
can anyone help me in computing the favourable and adverse leverage effect with explanations
Situation1
debt considered as debt good will is 14
if debt is considered as capital goodwill is 5
is it favourable or adverse
situation2
if debt is used as debt goodwill is 10
if debt is used as capital goodwill is (6.67)
Is it favourable oradverse?
CAclubindia
