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The effect of financial leverage Blank______ for all earning levels. Multiple choice question. is variable is disadvantageous is advantageous


The impact of financial leverage differs among various income levels. Financial leverage refers to the use of debt to gain additional assets or finance initiatives. Individuals or companies borrow money, promising lenders to repay both the principal and interest on the loan. Financial leverage is also referred to as equity trading or simply leverage. Fundamental analysis employs the degree of financial leverage (DFL) to assess the sensitivity of a company's earnings per share (EPS) to changes in profits before interest and taxes (EBIT). A high DFL often results in substantial interest payments, reducing EPS. Therefore, variability is the appropriate choice. For further information on financial leverage, please click here: brainly.com/question/22714492 #SPJ4