The use of debt to attempt to increase the return earned on owner's equity is referred to as:

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The use of debt to attempt to increase the return earned on owner's equity is referred to as leverage. This is because leverage involves borrowing money (i.e., using debt financing) to make investments with the goal of generating a higher return than the cost of the borrowed funds. This increases the overall return on equity for the company's owners, but also comes with increased risk due to the obligation to repay the debt with interest.

The Use of Debt to Attempt to Increase the Return