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4 Cards in this Set
- Front
- Back
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Low Geared Advantages |
- Burden of loan and interest payments are reduced - Good in times of Recession - Safe for investors |
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Low Geared Disadvantages |
- Ownership of the company is diluted - Dividends paid after tax so does not reduce Tax - Not good in a boom |
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Highly Geared Advantages |
- Interest on loan is paid before tax there reduce tax - Ownership is not diluted - Good in Boom |
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Highly Geared Disadvantages |
- Intrest payment MUST be paid - Volatile interest payments creates uncertainty - Increase risk for investors |
