Respuesta :

Answer:

A. Financial leverage

Explanation:

Financial leverage is simply the use of debt to buy more assets. It is defined as the degree to which a firm uses limited funds obtained at fixed cost with the aim of increasing returns to common shareholders. Financial leverage shows the use of debt and preferential share capital for magnifying the profit available to equity shareholders. In summary, it is the use of funds obtained at fixed cost to magnify the returns of the equity shareholders.