Financial leverage is the relationship between:
A)borrowings and equity.
B)borrowings and liabilities.
C)debt to assets.
D)gearing and assets.

Name: Financial leverage is the relationship between: A)borrowings and equity. B)borrowings and liabilities. C)debt to assets. D)gearing and assets.
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Question

Quizplus · Accepted Answer

Financial leverage refers to the use of borrowed funds (borrowings) to amplify returns, which involves the relationship between these borrowings and the equity of a company.

Financial Leverage Is the Relationship Between