Question

what is the meaning of financial leverage?​

Answer 1

Answer:

Your answer is here

Explanation:

Financial leverage which is also known as leverage or trading on equity, refers to the use of debt to acquire additional assets. The use of financial leverage to control a greater amount of assets (by borrowing money) will cause the returns on the owner's cash investment to be amplified.

Answer 2

Answer:

• The term leverage in literally sense means something used to take advantage of.
• In the context of financial management, financial leverage refers to a financial ratio which indicates proportion of debt in the total capital of an enterprise.
• Financial Leverage = Debt/ Equity