Examlex
Explain the distorting effect of inflation on the payment of capital gains taxes.
ROE
Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.
Financial Leverage
The use of borrowed funds to increase a company's investment potential, which can amplify both potential returns and potential losses.
Operating Leverage
Operating leverage refers to the degree to which a company or project can increase operating income by increasing revenue.
Total Leverage
The combination of operating leverage (affecting operating income) and financial leverage (affecting net income), indicating total risk.
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