define leverage? explain its types, relative significance
and their features?
Answers were Sorted based on User's Feedback
Answer / tanesha mishra
leverage is used to describe the firm's ability to use
fixed cost assets to increase the return to its owners.It
is a tool for measuring Buisness Risk,Financial Risk and
Overall Risk
types of leverages are operating leverage,financial risk
and combined leverage.
| Is This Answer Correct ? | 28 Yes | 5 No |
Answer / kavukuntla vinutha
A company's long term debt in relation to equity in its
capital structure. The larger the long term debt , the
higher the leverage.n there are 3 types of leverages that
are financial leverage and combined leverage and operating
leverage, financial leverage* operating leverage= cobined
leverage.
| Is This Answer Correct ? | 15 Yes | 6 No |
Answer / m saverin
Leverage is a financial term used in business. Leverage is borrowing money to make more money. Leverage is used to increase profit, which is the reward that one gets for the risk taken.
| Is This Answer Correct ? | 5 Yes | 2 No |
Answer / sumitra.raghavan
leverage is the ability of the firms to use fixed charges in such a way so as to increase the return to the shareholders
| Is This Answer Correct ? | 4 Yes | 2 No |
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