Why is use of long-term debt financing referred to as using financial leverage?

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Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

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Question Posted: Mar 26, 2015 06:43 AM

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Why is use of long-term debt financing referred to as using financial leverage?

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Just as a lever is used in the physical world to magnify the effect of a given force on an ob...View the full answer

Introduction to Corporate Finance What Companies Do

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