Assignment
Instructions
Research the impact of financial leverage on earnings and performance measures. Present, describe, and illustrate the leverage relation between earnings before interest and taxes (EBIT) and net income. Develop numerical examples to illustrate the concepts as you respond to the questions.
1. Present, describe and illustrate the leverage relation between ROE and ROI. Develop numerical examples to illustrate the concepts.
2. Present, describe and illustrate the leverage relation between EBIT and net income. Develop numerical examples to illustrate the concepts.
3. Review the referenced paper by Lord. (1998). Describe the research question being addressed. Discuss the methods used and the conclusions reached by the study.
Support your paper with a minimum of five (5) external resources In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.