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Which of the following might worry prospective lenders to a government?
Shareholder Leverage
The use of borrowed funds by shareholders to increase their potential returns from an investment.
Operating Leverage
A measure of how revenue growth translates into growth in operating income due to fixed costs in a company's business model.
Tax Rate
The percentage at which an individual or corporation is taxed by the government on their income or profits.
Cost of Debt
The effective rate that a company pays on its current debt, which can be measured in terms of either the before-tax or after-tax cost.
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