When financial leverage is used, what is the potential impact on before-tax cash flow and the current before-tax yield to the equity position? 3. Explain the meaning of the loan-to-value ratio from a mortgage lender 's pers pec- tive and from the viewpoint of an investor.

Answer rating: 100% (QA)

Impact of Financial Leverage on Cash Flow and Equity Yield Financial leverage refers to using debt financing alongside equity to increase potential returns It can have a significant impact on a compan... View the full answer