The use of personal borrowing to change the overall amount of financial leverage to which an individual is exposed is called:
A)homemade leverage.
B)dividend recapture.
C)the weighted average cost of capital.
D)private debt placement.
E)personal offset.

Question

Quizplus · Accepted Answer

The use of personal borrowing to change the overall amount of financial leverage to which an individual is exposed is called homemade leverage. It involves using personal debt to increase or decrease the amount of leverage an individual has, beyond what is provided by their investments or assets.

The Use of Personal Borrowing to Change the Overall Amount