Question: This week you started reading Module 8 and you were introduced to the concept of leverage. Explain some of the impacts of financial leverage. Some

This week you started reading Module 8 and you were introduced to the concept of leverage. Explain some of the impacts of financial leverage.

Some things to consider as you answer include these questions.

  • Why do companies use leverage?
  • What limits exist to taking on more leverage?
  • What impact does the risk of bankruptcy play?

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