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What is meant by the terms "favourable" and "unfavourable" leverage?
External Financing
Funding obtained from outside of a company, rather than from its own earnings, to support its operations or growth. This can come from debt, equity, or other financial instruments.
Constant Ratio
A fixed ratio that remains unchanged over time or under various conditions.
Pro Forma Statements
Financial statements that project the future financial performance of a company based on current and historical data.
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