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Financial leverage helps one to estimate ____________.
- Abusiness risk
- Bfinancial risk
- Cboth risks
- Dproduction risk
Correct answer: B
Discussion 1
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financial risk
Financial leverage helps one to estimate financial risk. Financial leverage which is also known as leverage or trading on equity, refers to the use of debt to acquire additional assets.
Financial leverage helps one to estimate financial risk. Financial leverage which is also known as leverage or trading on equity, refers to the use of debt to acquire additional assets.