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Research shows that costs outweigh benefits of using primary prevention programs.
Financial Leverage
A strategy involving the use of borrowed money to increase the potential return of an investment.
Operating Leverage
The use of fixed as opposed to variable cost in a firm’s cost structure.
Combined Leverage
Refers to the use of both operating and financial leverage by a company to assess the potential impact on earnings due to changes in sales.
Degree of Financial Leverage
A measure that quantifies the sensitivity of a company's earnings per share to fluctuations in its operating income due to the use of fixed cost financing.
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