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What Is Financial Leverage And Why Is It Important?

January 24, 2024 by Rachel Ostrander

What Is Financial Leverage And Why Is It Important? Financial leverage is the use of debt to buy more assets. Leverage is employed to increase the return on equity. However, an excessive amount of financial leverage increases the risk of failure, since it becomes more difficult to repay debt. What is meant by financial leverage?

Is Low Cost Of Equity Good?

January 24, 2024 by Ahmed Ali

Is Low Cost Of Equity Good? Stable, healthy companies have consistently low costs of capital What does a low cost of equity mean? If the return offered is too low, then the cost of equity is said to be too high for the investor and they will look elsewhere for returns. … Financial theory suggests