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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