why capital structure debt is called leverage ? compare debt leverage and earning per share

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why capital structure debt is called leverage ? compare debtleverage and earning per share

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Debt in capital structure is called financial leverage Financial leverage is the use of cheaper fixed cost bearing sources of funds like debt or preferred stock to magnify the return on equity Debt has two advantages over equity 1 Debt has lower cost due to See Answer

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why capital structure debt is called leverage ? compare debt leverage and earning per share

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why capital structure debt is called leverage ? compare debtleverage and earning per share

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