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What is financial leverage?
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Financial leverage is a concept in finance that refers to the ratio of equity capital to debt capital in a company or investment. Financial leverage allows to increase profit potential by taking on debt, which can be risky, but also profitable with proper management.
Financial leverage is a concept in finance that refers to the ratio of equity capital to debt capital in a company or investment. Financial leverage allows to increase profit potential by taking on debt, which can be risky, but also profitable with proper management.
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