Written with graceful simplicity, The Big Wave won the Childrenâs Book Award of the Child Study Association of America when it was first released. This ebook features an illustrated biography of Pearl S. Buck including rare images from the authorâs estate. Read on Scribd mobile: iPhone, iPad and Android.
Well, the âadvantageâ of increased financial leverage is a potentially higher return on equity. The disadvantage, on the other hand, is that the business is now riskier as it is financed with more debt (when revenue falls for unexpected reasons, there's now a whole lot of interest that still has to be paid).
leverage is an investment technique in which you use a small amount of your own money to make an investment of much larger value in that way leverage gives you significant financial power for example if you borrow 90 % of the cost of a home you are using the leverage to buy a much more expensive property than you could have afforded by paying cash if you sell the property for more than you borrowed the profit is entirely yours the reverse is also true if you sell at a loss the amount you borrowed is still due and the entire loss is yours buying stock on margin is a type of leverage as is buying a futures or options contract