1. increases as the net working capital increases.
2. is equal to the market value of a firm divided by the firm's book value.
3. is inversely related to the level of debt.
4. is the ratio of a firm's revenues to its fixed expenses
5. increases the potential return to the shareholders
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Home » Business » Financial leverage: 1. increases as the net working capital increases. 2. is equal to the market value of a firm divided by the firm's book value. 3. is inversely related to the level of debt. 4.