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Risk/Leverage Ratios

Study Slides Videos 11.1 Risk/Leverage Ratios This set of ratios explores the impact of leverage (also known as gearing) on the risk of a company. Borrowing funds increases the firm’s potential returns but also increases the riskiness of the enterprise and the potential volatility in earnings from one period to the next. 11.2 Debt/Equity Ratio ... Read more

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