Abstract
This paper enunciates some of the fundamental principles of financial planning. While planning for finance, principles of financial leverage should be kept in mind. Financial leverage is most advisable for increasng earnings per share. Absence of leverage shows poor financial management while too much dependence on it shows a risky financial policy. In most Indian enterprises, the debt to equity ratio is 1.8:1. Financial institutions such as IDBI. ICICI, and IFCI provide most of the finance.
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