Select Currency
Translate this page


Format: MS WORD  |  Chapter: 1-5  |  Pages: 65  |  897 Users found this project useful  |  Price NGN3,000





Firms at every stage of growth and development, from concept to maturity need found in order to survive. The aim of every business is to maximize the wealth and welfare of its owners. Without finance, the aim of every business cannot be met. This finance can be said to be the life wire of any firm without which there can be no survive. Financing is the acquisition of cash or other assets through means such is the sale of stocks, retaining net profit and increasing of dept. A firm’s capitalization consists of internally generated founds and due to the fact that a company may not be able to rise al the founds which it requires internally, it may depends on additional external financing. This capitalization of the firm would therefore incorporate both internally generated founds and external found which comprises loons both short terms and long terms and bonds. Financial leverage, the subject matter of this study, has to do with the use of external, founds in generating profit for the firm which is primarily the maximization of shareholders wealth and welfare.


Leverage invalids the use of external financing to act as qa higher than could be reached without its use. Usually, there exist varying financing structures. A simple common stock structure is one whereby no use is made common stock structure does not have the ability of enjoying the advantages of financing leverage. The use of financing leverage causes the financial structure of a firm being simple and also the impact the owners have on the firm increases by the issuing of common stuck whereas the claim creditors have on the firm increases with the use of borrowed founds. Leverage therefore is greatly considered when investment is being undertaken by investors. By this investors prefer a firm that is less levered than one that is highly levered. However, the level of activity that can take place in a firm depends on the level of activity that goes on in the economy. The economy has a direst effect on the activity of the firm and as such firms with debt financing also.



Companies that use dept and equity as a source of financing are bound to face some ups and downs. The Nigeria Bottling PLC tend to face:

i)  At some point in time there exist indiscriminate issue of common shares to the general public, to this background, it result in the dilution of corporate control. This is usually the case, if there are no pre-emptive rights entrenched in the regulation of the company.

ii) The use of order dept instruments and common stock give the new common stock owners the right to enjoy the same source of profit as the long standing holders of common stock in the organization. This is unfair to the existing shareholders, who have toiled over the years with the firm.

iii) Dividend payment to the owners of the equity are not a tax deductible expense. To (Nigeria Bottling Company) dept instrument were used for financing, to this effect, interest payment on such instruments should be tax deductible.

iv) Excessive use of dept and equity might result in over categorization of the firm hence a decline in the further earnings

v)  Indiscriminate use of dept and equity as a source of financing eliminates   the benefits of trading on equity.

vi) The cost of floating new issues is often very prohibitive, the founds expended in investigation and underwriting stock and dept is for in access of the cost used in issuing dept instruments.



The objective of the study includes the following:

1.To analysing the possible effects of financing leverage on the performance of the company.

2.To establish the relationship between the level of dept carried by the company

3.Also with regard to the economic condition that prevail, to find out its effect on the company cost of capital

4.To analysis the dept and equity which might result in over capitalization of the firm.

5.To investigate and underwriting stocks and dept in the excess of the cost used in issuing dept instrument.

6.Finally, the sector of the economy within the company operated would be critical reviewed in order to find out how it affects the operational of the firm therein.



In-order to elicite information from respondents, the  following research question were generated:

1.How can the effects of financial leverage be analysis on the performance of a company.

2.What are the relationships between the level of dept carried out by the company?

3.In which can the economic condition prevail to find out its effect on the company cost capital.

4.In analysing the dept and equity of the company performance (The Nigeria Bottling Company), on capitalization, what are the things are likely to result.

5.How do we investigate the stock and the dept in the access of the cost used in issuing dept instrument.

6.What are the effects of the operations of the fir, of the economy within the company operated?




HO: The economy environment without the period of study does not effect the level of dept financing by the firms under study.

HI: The economic environment within the period of study effect the level of financing by the firms under study i.e. the Nigeria Bottling Company.


HO: The level of dept financing employed does not effect the performance of the firms under study.

HI: The level of dept financing employed effects the performance of the firms under study.


HO: The state of economy measured by the grass domestic project does not affect the performance of Nigeria Bottling Company PLC.

HI: The state of the economy measured by the grass domestic products the performances of the firm under study.


HO: Implies Null Hypothesis

HI: Implies Alternative Hypothesis.



The significant of the study is to enable us to evaluate how the economy effect the performance of the Nigeria Bottling Company PLC. This study will therefore enhance an understanding on how financial leverage can be said to thrive well in an economy that is forming in that as dept  employed more founds to increase, for investment and as such profit fends to increase.The study will be of almost importance to the school library, students in management and for future project writers and research who will wish to use it as reference to their own study.



The scope of this study centers around the company within the manufacturing sector of the Nigerian economy. “NIGERIA BOTTLING COMPANY PLC”. Analysis on the company. I.e. historically. Operationally and structurally. Ration analysis would also be carried out in order to reach a final objective conclusion

The limitation of the study includes data, since data used are only data in published reports for financial analysis. The confidentially of such data the firm reserved to themselves. Given the economic trend i.e. inflationary effects which affects the level of activity of the firm, which includes firm with dept financing also.



1.  FINANCE  This is the system by which the income of a company is raised and administered. It deals with methods for supplying capital needed to acquire, development and operate real property

2.  FINANCING INVESTMENT This id the purchase of sound stock or bound compared to real investment in a capital asset such as real estate or plant and machinery.

3.  FINANCIAL LEVERAGE This is the use of external financing in order to raise the profit of the company that employs it. It has effect on the per share earnings of the common stock of a company when large sums must be paid for bound interest or preferred stock dividend on both, before the common stock is established to share in earning Financial leverage may be advantageous for the common stock when earning are good enough but may work against the common stock when earning decline.

4.  DEPT FINANCING  This is the long term borrowing of money for business, usually in exchange for dept securities, for the purpose of obtaining working capital or other founds necessary to operational needs

5. EQUITY FINANCING This is the acquisition of money for capital or operating purposes in exchange for a share or shares in the business being financed.


Not What You Are Looking For?

For Quick Help Chat with Us Now!

+234 813 292 6373

+233 541 351 187

Here's what our amazing customers are saying

Emmanuel Essential
Kogi state University
I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟
Very Good
Azeez Abiodun
Moshood Abiola polytechnic
I actually googled and saw about iproject master, copied the number and contacted them through WhatsApp to ask for the availability of the material and to my luck they have it. So there was a delay with the project due to the covid19 pandemic. I was really scared before making the payment cause I’ve been scammed twice, they attended so well to me and that made me trust the process and made the payment and provided them with proof, I got my material in less than 10minutes
Very Good
Gbadamosi Solomon Oluwabunmi
Swift delivery within 9 minutes of payment. Thank you project master
Ajayi Crowther University, Oyo
I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!
Ahmadu Bello University
I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!
Temitayo Ayodele
Obafemi Awolowo University
My friend told me about iprojectmaster website, I doubted her until I saw her download her full project instantly, I tried mine too and got it instantly, right now, am telling everyone in my school about, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work
Very Good
Stancy M
Abia State University, Uturu
I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...
Ibrahim Muhammad Muhammad
Usmanu danfodiyo university, sokoto
It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!
Dau Mohammed Kabiru
Kaduna State College of Education Gidan Waya
This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.
Very Good
Joseph M. Yohanna
Thanks a lot, am really grateful and will surely tell my friends about your website.


  • Select 3 Project Topics of your choice from your Department.
  • Submit the 3 topics to your Supervisor for Approval.
  • Call Our Instant Help Desk on 0813-292-6373 and Get Your Complete Project Material Instantly.
  • All project materials on this website are well researched by professionals with high level of professionalism.


How do i choose a Project Topic?

Look for your department and select any topic of your choice

I have a fresh topic that is not on your website. How do I go about it?

How fast can i get a complete project from your website?

Within 15 minutes if the exact project topic is on our website

Is it a complete research project or just materials?

It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data

One of your topics suites my project, but the case study is different. What do i do?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

How do i get my complete project?

Your Complete Project Material will be sent to your Email Address in Ms Word document format

Can I get my Complete Project through WhatsApp?

Yes! We can send your Complete Research Project to your WhatsApp Number

What if my Project Supervisor made some changes to a topic i picked from your website?

Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

Do you assist students with Assignment and Project Proposal?

Yes! Call Our Instant Help Desk Now: (+234) 813-292-6373 and you will be responded to immediately

What if i do not have any project topic idea at all?

Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: (+234) 813-292-6373

How can i trust this site?

We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!