Economy, asked by Mush7560, 1 year ago

What is meant by leverage what are the various type of leverage?

Answers

Answered by VBJ1
6
In finance, leverage is any technique involving the use of borrowed funds in the purchase of an asset, with the expectation that the after tax income from the asset and asset price appreciation will exceed the borrowing cost.

types of leverage:

Operating Leverage: Operating leverage is concerned with the investment activities of the firm. ...
Financial Leverage: Financial leverage is mainly related to the mix of debt and equity in the capital structure of a firm. ...
Combined Leverage: ...
Working Capital Leverage:
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