A company that is leveraged is one that
A)contains debt financing.
B)contains equity financing.
C)has a high earnings per share.
D)has minimized its risk of loss by acquiring a portfolio of investments.

Question

Quizplus · Accepted Answer

A company that is leveraged has taken on debt financing, meaning that they have borrowed money to finance their operations or investments. This can result in increased potential returns for the company, but also increased risk if they are unable to make their debt payments. Equity financing, earnings per share, and portfolio investments do not necessarily indicate a leveraged company.

A Company That Is Leveraged Is One That