What is financial leverage and how is it provided by long-term debt?

Answer The use of financial leverage is a choice made by corporate managers over how to finance their internal operations. Proper use of debt and leverage can result in higher profits, but mismanagement c... Read More »

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How does the interest rate affect financial leverage?

Interest rates have a big effect on how much a business or individual can borrow. People or companies that borrow money are said to be leveraged. Lower interest rates mean they can afford to borrow... Read More »

How might EBIT be influenced by financial leverage at high debt levels?

Investors and managers monitor financial statements to track business performance. Earnings before interest and taxes--or EBIT--measures profitability. Analysts must delve deeper to determine the ... Read More »

What is stock market leverage?

Investors explore the stock market for financial gains. Leverage is an investment technique designed to improve asset returns. Recognize the risks of using leverage, before making economic decision... Read More »

How long do you keep business financial records?

How long you should keep business financial records depends on the action, expense, or event of the document according to the Internal Revenue Service standards. Generally, you must keep your recor... Read More »