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Homemade leverage is:
A. the incurrence of debt by a corporation in order to pay dividends to shareholders.
B. the exclusive use of debt to fund a corporate expansion project.
C. the borrowing or lending of money by individual shareholders as a means of adjusting their level of financial leverage.
D. best defined as an increase in a firm's debt-equity ratio.
E. the term used to describe the capital structure of a levered firm.

Respuesta :

HudsonWillliams

Answer:

it's c cuz borrowing money is good

Explanation:

I just found it

Homemade leverage is the act where the money is being borrowed or lend by the investors with an aim to adjust their own financial leverage.

Option C is correct.

What is leverage?

Leverage is the act of taking funds in current scenario to acquire certain things with view to earn maximum returns in future periods.

When the investors take or lend money in order to adjust the levels of financial leverage, then that leverage is treated as homemade leverage. It can be done either borrowing funds or giving funds who are in need of them resulting in balancing of debt leverage.

Therefore, the correct option is option C.

Learn more about the financial leverage in the related link:

https://brainly.com/question/14988262

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