Sunday, May 26, 2013

Leverages - PPT

Leverage is the employment of an asset or source of funds for which the firm has to pay a fixed rate of return. In case of a higher leverage, outside borrowings are higher, therefore, the risk is more and thereby the profits are also more and vice versa

Types of Leverages: 

1. Operating Leverage

2. Financial Leverage

 3. Combined Leverage

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