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    that, there has been noticed the effect of financial leverage: the higher the level of lev
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    Financial leverage is one of the ways to increase the company’s profit: it means use of debt instruments to increase the expected level return on company’s equity. The level of the company’s financial leverage is estimated by the ratio of debt to the sum of debt and equity. The higher this ratio is, the more risky is the situation of the company. Together with that, there has been noticed the effect of financial leverage: the higher the level of leve
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    bt instruments to increase the expected level return on company’s equity. The level of the company’s financial leverage is estimated by the ratio of debt to the sum of debt and equity. The higher this ratio is, the more risky is the situation of the company. Together with that, there has been noticed the effect of financial leverage: the higher the level of lev
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    company’s financial leverage is estimated by the ratio of debt to the sum of debt and equity. The higher this ratio is, the more risky is the situation of the company. Together with that, there has been noticed the effect of financial leverage: the higher the level of lev
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    y. The higher this ratio is, the more risky is the situation of the company. Together with that, there has been noticed the effect of financial leverage: the higher the level of lev
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    that, there has been noticed the effect of financial leverage: the higher the level of leverage is, the more rises expected profit on company’s equity. Therefore, financial leverage can be used in different situations as a mechanism of changing the company's financial position and cash flow. There are 4 positions which are correlating with financial leverage level and dependable on it. They are:

    1. The ratio of debt and equity, i.e. the cost

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