For a lessee, financial leverage is greater based on typical financial leverage ratios with a financial lease as opposed to an operating lease.

Name: For a lessee, financial leverage is greater based on typical financial leverage ratios with a financial lease as opposed to an operating lease.
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Financial leases typically result in higher liabilities on the balance sheet compared to operating leases, increasing the debt-to-equity ratio, which is a measure of financial leverage.

For a Lessee, Financial Leverage Is Greater Based on Typical