“A Study of Impact of Leverage on Cost of Capital of The Selected Pharmaceutical Companies of India",

Abstract

Leverage is the very important comportant of financial decision making process. First researcher want to know the performance of pharmaceutical companies on the basis of leverage and cost of capital of the selected companies. So in this research paper researchern have taken two variables which is leverage and cost of capital of the pharmaceutical companies of india. In this study population is 20 top pharmaceutical companies but researcher have taken only 5 sample in this study which is first top five pharmaceutical companies on the basis of total assets and market capitalisation. The main variable in the study is operating leverage, financial leverage and cost of capital of the pharmaceutical companies of the India. So here purpose of the study is researcher want to know is there impact of leverage on cost of capital and performance of pharmaceutical companies of India, So that on the basis of objective researcher set 6 hypothesis. Researcher want to know the correlation between two variable so test apply CORRELATION. The second objective is to know the impact of leverage on cost of capital so researcher has used SIMPLE REGGRATION analysis. Researcher has find there is no significant relationship between leverage and cost of capital. Reseacher has also find there no impact of leverage on cost of capital.