Answer: Leverage is defined as the tendency for profits to change at a faster rate than sales. It is a relationship between equity share capital and securities and creates fixed interest and dividend charges. It is also known as gearing. Leverage is a cost depicting tool.
Leverage is defined as the tendency for profits to change at a faster rate than sales. It is a relationship between equity share capital and securities and creates fixed interest and dividend charges. It is also known as gearing. Leverage is a cost depicting tool. Source: CoolInterview.com
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