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iragen [17]
3 years ago
12

Leverage _____ the return to shareholders and _____ the risk of their investment

Business
1 answer:
Dima020 [189]3 years ago
3 0

Answer:

d. increases; increases

Explanation:

Leverage describes the method of capital acquisition. The term is used mostly to refer to the borrowing of capital. A highly leveraged business is a business that has a high percentage of debts.

Business borrows for expansion or to finance the acquisition of assets.  By borrowing, the company increases its capacity to produce and consequently,  the possibility of an increase in sales. An increase in output leads to high returns to the shareholders.

Higher returns can only be achieved if the market behaves as expected. If operations do not go as planned, then leverage will leave the shareholder exposed to higher risks. The losses likely to be suffered will be proportional to the level of leverage.

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For this reason, there is a credit for paid leave for events related to Covd-19 which is why Gillian, Oscar and Rodney will be eligible for paid leave credit. Yolanda however, broke her wrist and this is not coronavirus related so standard rules will apply and she will not be eligible for paid leave credit.

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5 0
4 years ago
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