Which of the best describes financial leverage

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Problem 1: "A" wants to know which one of the following best describes Financial Leverage:

(a) It enables an investor to reduce cash outlay for purchasing property
(b) It magnifies both positive and negative returns on a property
(c) it increases the financial risk of an investment
(d) All of the above

Problem 2: "A" wants to know that Depreciation in real estate investment analysis accurately represents which one of the following:

(a) Non-cash expense which facilitates tax benefits to an investor
(b) Cash expense only
(c) Reduction in the actual market value of a property
(d) Complex thing to calculate and should be ignored

Reference no: EM132936885

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