Leverage effect-on goodwill-ca final

the firm having debt potion in its capital (i.e. using long term debt) is called levered firm. And the firm which dont have any debt is called unlevered firm.

If the company's return on inverstment is higher than rate of interest on debt then using debt will fetch more return on equity. This is called leverage effect

Mr Ashish Gupta Thanks for Reply any numerical illustration on this will help me a lot can u give in this forum itself ? if possible please

Thanks 

Mr Ashish Thanks

Just can u say If i find good will on both methods  and to find it is favourable or adverse  leverage in this manner

Effect of Leveraage =Goodwill on levered firm -good will on unlevered Firm