Financial Leverage Capital Structure
Financial Leverage Capital Structure refers to the mix of debt and equity used by a company to finance its operations and growth. It involves determining the optimal ratio of debt to equity that will maximize a company's value and profitability. Financial leverage is the use of debt to increase the potential return on investment, while capital structure refers to the overall makeup of a company's financial resources. By carefully managing financial leverage and capital structure, companies can balance risk and return to achieve their financial goals.