The accrual to an employee of pension rights arising from employer contributions that are not contingent on the employee's continuing service with the employer.

Give the holder the right to receive compensation at some future date based on the market price of the stock at the date of exercise over a preestablished price.

The existence of fixed Stock appreciation rights operating costs, called operating leverage, also affects earnings. The higher the percentage of fixed operating costs,

The expense of debt financing Its tax deductibility is interest, a fixed charge dependent on the amount of financial principal and the rate of interest. Interest is a contractual obligation created by the borrowing agreement. In contrast to dividends, interest must be paid regardless of whether the firm is in a highly profitable period. An advantage of interest over dividends is

The use of financial leverage is only successful if the rate of earnings on borrowed funds exceeds the fixed charges. This is also known as