The Use of Debt Is Sometimes Described as Financial Leverage

question 19

True/False

The use of debt is sometimes described as financial leverage because debt can have the effect of increasing the return on equity.

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Definitions:

Used Textbook

A previously owned textbook that may be sold at a lower price than a new version of the same book.

Statistical Discrepancy

The difference between two figures that are expected to be equivalent, often arising from timing or measurement errors in data collection.

GDP

A metric for evaluating the economic success of a nation, Gross Domestic Product calculates the overall value of goods and services generated over a designated period.