describe the pattern of leverage
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The term leverage indicates the ability of a firm to earn higher return by employing fixed assets or debt. It shows the effects of the investment patterns or financing patterns adopted by the firm. ... It must however be noted that higher the degree of leverage, higher is the risk as well as well as return to the owners.
Answered by
1
Explanation:
The term leverage indicates the ability of a firm to earn higher return by employing fixed assets or debt. It shows the effects of the investment patterns or financing patterns adopted by the firm. ... It must however be noted that higher the degree of leverage, higher is the risk as well as well as return to the owners.
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