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When domestic prices rise
Debt/Equity Ratio
A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.
ROE
The percentage of return on investments that shareholders directly benefit from, calculated by dividing net income by shareholder equity.
Compound Leverage Factor
A measurement used to describe the magnification of risk and return caused by using borrowed money or financial derivatives within an investment.
Financial Leverage
The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.
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