Asked by
Isabella Huelsbeck
on Nov 18, 2024
Verified
Leverage implies that a company
A) contains debt financing
B) contains equity financing
C) has a high current ratio
D) has a high earnings per share
Leverage
The use of borrowed capital or financial instruments to increase the potential return of an investment or project.
Debt Financing
The raising of funds through borrowing, either by issuing bonds or taking out loans, which creates a liability to be repaid over time.
- Understand the concept of leverage and its impact on a company’s financial structure.
Verified Answer
YS
Learning Objectives
- Understand the concept of leverage and its impact on a company’s financial structure.