What Is Financial Leverage? What Financial Ratio Can Be Increased

question 123

Essay

What is financial leverage? What financial ratio can be increased by using financial leverage?

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Definitions:

Gain

An increase in wealth, assets, or value, often resulting from investment or business operations.

Lose

To be deprived of something one once had or to fail to win in a competition or conflict.

Breakeven

The point at which total cost and total revenue are equal, meaning no net loss or gain is incurred by the business.

Cost to Play

The initial investment or expense required to enter a market, participate in a game, or start a new venture.