Question

what is financial leverage write the formula to calculate the financial leverage​

Answer 1

hello!

_____

Leverage

• = total company debt/shareholder's equity.

Answer 2

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$\purple{⇒What \: is \: meant \: \: by \: \: financial \: \: leverage?}$

⇒Leverage is an investment strategy of using borrowed money—specifically, the use of variousfinancial instruments or borrowed capital—to increase the potential return of an investment.Leverage can also refer to the amount of debt a firm uses to finance assets.

$\bold\purple{Financial \: \: Leverage \: \: Formula}$

$\red{Leverage = total \: \: company }$

$\red{debt/share \: holder's \: equity}$