1. Money

Does your Business Firm Use Leverage to Increase your Returns?

By November 1, 2012

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The judicious use of leverage can increase the returns of your business firm. Leverage just refers to the use of debt financing to increase the returns of the business firm. If the firm uses debt rather than equity financing, then the owner's equity is not diluted and the return on equity increases.

Read about the different types of leverage - operating and financial - and the different types of risk a firm faces in this article!

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