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Q: Finance ( No Answer,   1 Comment )
Question  
Subject: Finance
Category: Business and Money > Accounting
Asked by: mattie1-ga
List Price: $2.00		 Posted: 17 Nov 2005 19:36 PST
Expires: 17 Dec 2005 19:36 PST
Question ID: 594484 
How does the interest rate on new debt influence the use of financial leverage?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Finance
From: jack_of_few_trades-ga on 18 Nov 2005 06:05 PST		  
Financial leverage is "The degree to which an investor or business is
utilizing borrowed money."
http://www.investorwords.com/1952/financial_leverage.html

If interest rates are higher then investors will borrow less money
because it costs more to borrow the money.
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