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The more debt used, the greater the leverage a company employs on behalf of its owners.
What is the leverage of a company?
Leverage is the quantity of debt a company has in its combination of debt and equity (its capital structure). A company with more obligation than average for its drive is said to be highly leveraged. Leverage is not necessarily wrong.
What does it suggest to employ leverage?
- Leverage is an investment process of using borrowed money.
- the use of different financial instruments or borrowed capital
- To improve the potential return of an investment.
- Leverage can also refer to the portion of debt a firm uses to fund assets.
To learn more about Leverage company, refer
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