Day: June 21, 2023
Day: June 21, 2023
What Is Financial Leverage? And How Do Companies Use It?
A company with a high debt ratio will also exhibit high financial leverage, since greater proportions of debt in its capital structure augment the effects of financial leverage. This can increase the potential for higher returns, but also the risk of losses due to the costs of interest and debt repayment. Ultimately, financial leverage can
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