As the goals of financial management, maximum earnings per share and rate of rectums on common Stockholders 'equity are well accepted by more and more Chief financial Offices.

The above figures show that the rate has raised a little from 1997 to 1998, and Solarwind Corporation's profitability has improved slightly.

This paper discusses and analyzes the relationship between the financial leverage rate and rerum ratio and risk of holding companies and maintains that the former affects the latter.