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Debt leverage

• The amplification in the return earned on equity funds when an investment is financed partly with borrowed money.

• The amplification of the return earned on equity when an investment or firm is financed partially with borrowed money.

 
 

Follow this link for all the terms related to debt.

 
 Embedded terms in definition
 Earned on equity
Equity
Firm
Return
 
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Tips for Trying to Fix a Clogged or "Frozen" Home Equity Line: For years, homeowners have turned to home equity lines of credit (HELOCs) as a way to borrow against their home's value to pay for college tuition, home improvements, medical bills and other major expenses. (A home's equity is the market value minus what is owed on the mortgage. If you owe $100,000 on your mortgage but your home is worth $250,000, your equity is $150,000.) More...

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