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.
