The Study on the Financial Leverage Effect of GD Power Corp. Based on Financing Structure

TL;DRAbstract

At present, enterprises are paying more and more attention to the source of fund and effectiveness and rationality of financing structure, as the optimal financing structure is crucial to the development of enterprises. The financing structure has financial leverage effect; the financial leverage effect affects the return on equity through the choice of liabilities ratio in financing structure. The paper makes empirical analysis on the relation of financing structure and financial leverage based on State Power Corp., and comes to related conclusions.

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