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October 27, 2024

Exploring Debt and Financial Leverage: Analysis, Ratios, and Risk-Return Dynamics

Exploring Debt and Financial Leverage: Analysis, Ratios, and Risk-Return Dynamics

The more debt a firm uses, the greater its financial leverage, which magnifies both risk and return. Discuss the relationship between debt and financial leverage and the ratios used to analyze a firm’s debt. Your responses should include at least two peer-reviewed sources for support of your findings.

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