If a property owner borrows money at a rate that is higher than the equity yield rate,negative leverage exists.

Name: If a property owner borrows money at a rate that is higher than the equity yield rate,negative leverage exists.
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Negative leverage occurs when the cost of borrowing (interest rate) is greater than the return on investment (equity yield rate). This means that the property owner is paying more in interest than they are earning in profits, resulting in a net loss.

If a Property Owner Borrows Money at a Rate That