dq 1 - beware Companies use leverage for acquisitions of...

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Leverage is simply borrowing money to buy additional assets. You are using leverage when you buy a house and get a mortgage. If you buy stock on margin, you are borrowing from the broker so you can buy more stock. Leverage can work both ways, so
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Unformatted text preview: beware. Companies use leverage for acquisitions of businesses they believe will be profitable. They could do so with loans or issuing bonds....
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