Asked by
Jacob Cornelius
on Dec 01, 2024
Verified
Financial leverage affects a firm's EBIT.
Financial Leverage
The use of borrowed funds with a fixed cost in an attempt to increase the returns to shareholders by magnifying investment gains or losses.
EBIT
Earnings Before Interest and Taxes, a financial metric that calculates a firm’s profit excluding interest and income tax expenses.
- Assess the impacts of financial leverage on a corporation's fiscal outcomes.
Verified Answer
NF
Learning Objectives
- Assess the impacts of financial leverage on a corporation's fiscal outcomes.