About this document

Notes by Akshat Gangwani is a document available to read on EtoBox.

Leverage in finance refers to using borrowed funds or fixed costs to enhance potential returns on investments, allowing businesses to control larger assets than their own equity. It is categorized into three types: operating leverage, financial leverage, and combined leverage, each affecting profit and risk differently. The importance of leverage lies in its ability to increase profits, facilitate growth, improve capital efficiency, and provide tax benefits.

Author

Akshat Gangwani

Language

EN