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If a Firm Borrows Money,it Is Using Financial Leverage

question 46

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If a firm borrows money,it is using financial leverage.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Cash Flow

Represents the total amount of money being transferred into and out of a business, particularly affecting the company's liquidity.

Current Cash Flow

The amount of money moving in and out of a business in the present, often used to assess financial health.

Growth Opportunities

Growth opportunities refer to the prospects or avenues through which a business can expand its operations, revenues, or market share, including new product lines, markets, or technologies.

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