Question

What is financial leverage explain with the help of example?

Answer 1

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Financial leverage which is also known as leverage or trading on equity, refers to the use of debt to acquire additional assets. ... an increase in the value of the assets will result in a larger gain on the owner's cash, when the loan interest rate is less than the rate of increase in the asset's value.....

Answer 2

refers to the use of debt to acquire additional assets.