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What are the fundamental principles of financial leverage?

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Finance

What are the fundamental principles of financial leverage?

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Financial leverage is the use of fixed cost sources of funds like debt and preferred stock to magnify the return to common stockholders It takes advantage of the fact that for debt and preferred stock the dollar return payable is the same irrespective of the net income that is made subject of course to the fact that debt interest has    See Answer
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What are the fundamental principles of financial leverage?

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