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Financial Leverage means to what extent the company uses debt in its capital structure to increase the return on equity
Also it can be defined as financial ratios which threw light on the long term solvency of a firm as reflected in its ability to assure the long-term lenders with regard to (1) periodic payment of interest during the period of the loan (2) repayment of principal on maturity or in predetermined instalments at due dates.
financial leverages is the position of the company's turnover or know the liquidity of the company or know the share value etc.,
