________ results from the use of fixed-cost assets or funds to magnify returns to a firm's owners.
A) Long-term debt
B) Equity
C) Leverage
D) Capital structure

Question

Quizplus · Accepted Answer

Leverage involves using fixed-cost assets or funds to amplify returns to owners. This can be achieved through the use of debt financing, which magnifies the potential gains (and losses) from an investment.

________ Results from the Use of Fixed-Cost Assets or Funds