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CORPORATION 2020

Transforming Business for Tomorrow's World

Blog posts June 2012

Lethal Link: A Short History of Leverage & Financial Crises

June 15, 2012

By Rafael Torres & Pavan Sukhdev

Borrowing and lending are as ancient as commerce, and leverage today is a key component of the toolkit for business. Leverage enables a corporation to make investments or incur expenses it would not otherwise have been able to undertake based on its owners’ resour…

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