Explain good and bad uses of leverage, Accounting Basics

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Explain good and bad uses of leverage

Assume that you were going to explain good and bad uses of leverage to a person just about to buy a restaurant or other small business or to a home buyer. How would you explain this concept? If they were to finance 90% of the purchase, is that too much leverage? If they bought only what they could buy for cash, are they being too conservative on use of leverage?

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Accounting Basics: Explain good and bad uses of leverage

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Accounting Basics: Explain good and bad uses of leverage

Reference No:- TGS0675212

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Find future value of cash flows if invested at ten percent

Q : Standard cost sheet for one unit of the product

Q : Understand the time value of money

Q : Waless standard cost of materials per unit

Q : Explain good and bad uses of leverage

Q : Explain program with favorable rate of return

Q : Calculate the internal rate of return of the investment

Q : What was the percent of net fixed assets

Q : New required return-fantasty corp

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Explain good and bad uses of leverage

Reference No:- TGS0675212

Recent Questions Asked Accounting Basics

Q : Find future value of cash flows if invested at ten percent

Q : Standard cost sheet for one unit of the product

Q : Understand the time value of money

Q : Waless standard cost of materials per unit

Q : Explain good and bad uses of leverage

Q : Explain program with favorable rate of return

Q : Calculate the internal rate of return of the investment

Q : What was the percent of net fixed assets

Q : New required return-fantasty corp

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