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Leverage
1 Financial leverage is the act of increasing the return on an investment by borrowing some of the funds at an interest rate less than your return on the project 2 Operating leverage has the same objective, but you increase your return by increasing cheaper fixed costs Leverage can be positive or negative If the return on an investment is greater than the cost of borrowing, leverage is positive If the return is less, leverage is negative
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- Part of Speech: noun
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