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- Types of leverage include1234:
- Operating leverage, which is the use of fixed and variable costs to influence sales and operating profits234.
- Financial leverage, which is the use of debt in a company’s capital structure to increase earnings234.
- Combined leverage, which is the combination of operating and financial leverage and their effect on earnings per share134.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Leverage is of three types: 1. Operating Leverage, 2. Financial Leverage, and 3. Combined Leverage.www.businessmanagementideas.com/financial-ma…Leverage is defined basically as the firm’s utilization of an asset or liability which requires a fixed payment. It is said that leverage is a double-edged sword. The types of leverages are:- 1. Operating Leverage 2. Financial Leverage 3. Combined Leverage.www.economicsdiscussion.net/financial-managem…Types of Leverage
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- Financial Leverage (FL) A Degree of Financial Leverage is created with the help of the debt component in a company’s capital structure. ...
- Operating Leverage (OL) Just like the financial, it is a result of operating fixed expenses. ...
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