Why is Debt Mechanics Called Leverage?

User Generated

ZfCbbu

Business Finance

Question Description

Debt financing is called leverage because, like a lever in mechanics, it
      makes the company stronger.
       magnifies the influence a company has.
   has a magnifying effect on financial performance.

can lift a company out of mediocre performance.

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Explanation & Answer

magnifies the influence a company has.

Npnqrzvpurycpragre (761)
Cornell University

Anonymous
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