_______ is a term used to describe the magnification of risk and return introduced through the use of fixed-cost financing, such as preferred stock and debt.
a) Benchmarking
b) Operating leverage
c) Fixed-payment coverage
d) Financial leverage

Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets.

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hriz110 hriz110 · Answer 2 · 2021-09-01T02:36:47+02:00

hriz110 hriz110

01-09-2021

D Financial leverage

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_______ is a term used to describe the magnification of risk and return introduced through the use of fixed-cost financing, such as preferred stock and debt. a) Benchmarking b) Operating leverage c) Fixed-payment coverage d) Financial leverage

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_______ is a term used to describe the magnification of risk and return introduced through the use of fixed-cost financing, such as preferred stock and debt.
a) Benchmarking
b) Operating leverage
c) Fixed-payment coverage
d) Financial leverage