The project topic " Effect of financial leverage on company performance", has to do with the use of external finds (dept and equity) in generating profit for their firm company which its primary aim is maximization of shareholder welfare, wealth and also profit.
I shall make use of primary data, a questionnaires which will be drafted (to be presented for onward approval) and interviews.
I shall lay hand on books, management journals and periodical. However, the rudiments of the study will be considered, also a general overview of the effects of using dept and equity as a source of financial to Nigeria bottling of financing as mentioned above generated heated debates, I shall touch on it.
The study will critically analyses the possible effects of financial leverage on the performance of companies by trying to establish a relationship between the level debt carried by firms and their level of performance given debt carried by firs and their level of performance given economic conditions that prevail during the time of my research.
I shall take a backward book on the company performances from 2000-003 to ascertain the ratio analysis and also know the graphical behaviour. The financial structures of he companies under study from 200-200 will be put under consideration.
I shall apply Regression and correlation analysis methods to measure the average amount of a change in one variable that is associated with until increase or decrease in amount of another variable.
Correlation stands there to test the efficiency of he Regression with respect of he company under study This research work will be made-up of five chapters. I can only comment on chapter one for now (other chapters will be) formulated and presented in due (course).
Chapter one: The introductory chapter, deals with background of the study, purpose and scope of he study, statement of hypothesis, significance of he study, limitation of he study and definition of terms
Finally, the findings, recommendation and conclusion.