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

1 Answer

5 votes

Answer:

Increase; increase

Step-by-step explanation:

Leverage increases the return to shareholders and increases the risk of their investment. It is utilised by organisations to obtain a benefit, repurchase shares, make a securing or purchase out another organisation. This obligation is utilised to develop the organisation or raise cash-flow to put resources into another benefit. The type of obligation can be a utilised credit, which will, in general, convey high enthusiasm as it is riskier.

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