What is financial leverage, and how does it relate to the capital structure of a business?
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What is financial leverage, and how does it relate to the capital structure of a business?
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- What is meant by capital structure, what are the characteristics of it's main components, and how that may affect a company solvency?What is a working capital, and how does it differ from other types of capital? What role does it play in the overall business process?What factors contribute to the business risk of a company? What is financial risk? How do the various sources of risk affect the optimal capital structure?