Financial leverage relates to a company's use of debt financing to acquire and use productive assets.

Name: Financial leverage relates to a company's use of debt financing to acquire and use productive assets.
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Financial leverage refers to the extent to which a company uses debt financing to invest in its operations and acquire assets. By using debt, the company can increase its profits and returns on investment, but also exposes itself to greater financial risks.

Financial Leverage Relates to a Company's Use of Debt Financing