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Leverage
The use of borrowed capital or financial instruments to increase the potential return of an investment.
Equity Financing
The process by which a company raises capital through the sale of shares.
Depreciation
A method of allocating the cost of a tangible asset over its useful life.
Noncash Expense
Expenses recorded on an income statement that do not involve a direct cash outflow, such as depreciation or amortization.
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