#reading-37-measures-of-leverage
Leverage increases the volatility of a company’s earnings and cash flows and increases the risk of lending to or owning a company.
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Open it data-bubo-id="temp-selection">Leverage increases the volatility of a company’s earnings and cash flows and increases the risk of lending to or owning a company.<span> Additionally, the valuation of a company and its equity is affected by the degree of leverage: The greater a company’s leverage, the greater its risk and, hence, the greater the discoun Summary
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