Answered: How can a small-business owner or…

How can a small-business owner or corporate manager use financial leverage to improve the firm’s profits and return on owners’ equity? Is there a potential danger of using financial leverage?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter1: Introduction To Finance For Entrepreneurs

Section: Chapter Questions

Problem 14DQ

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How can small businesses or corporate manager use financial leverage to improve the firm's profits and return on owners' equity?
How could overconfidence affect the financial manager of the firm and the firm’s shareholders?
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