The use of personal borrowing to change the overall amount of financial leverage to which the individual is exposed is called:
A) Homemade leverage.
B) Dividend recapture.
C) The weighted average cost of capital.
D) Private debt placement.
E) A privileged subscription offer.

Question

Quizplus · Accepted Answer

Homemade leverage refers to the process where individuals adjust their exposure to financial leverage through personal borrowing or lending, essentially altering their financial risk and return profile without relying on corporate-level financial strategies.

The Use of Personal Borrowing to Change the Overall Amount