This alternative form of gearing occurs when borrowed capital is used for an investment with the expectation that the resulting profits will be more than the interest payable. The more a business borrows over this, the more highly leveraged it is.
This alternative form of gearing occurs when borrowed capital is used for an investment with the expectation that the resulting profits will be more than the interest payable. The more a business borrows over this, the more highly leveraged it is.
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