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Examveda

When a company uses debt fund in its financial structure, it will lead to a change in

A. Financial leverage

B. Operating leverage

C. Money market leverage

D. Stock market leverage

Answer: Option A

Solution(By Examveda Team)

When a company uses debt fund in its financial structure, it will lead to a change in Financial leverage. Financial leverage is the amount of debt that an entity uses to buy more assets. Leverage is employed to avoid using too much equity to fund operations.

This Question Belongs to Commerce >> Financial Management

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