Describe financial leverage and low operating leverage
Describe briefly high financial leverage, low operating leverage?
Expert
Whenever financial leverage is high than fund is receives mainly through the preference shares, debts and debentures. This creates the base solid by keeping the operating leverage low on scale. The financial decision can be exploited as the management's disquiet can be earning per share that will favor the debt capital only. This will rise when the rate of interest on debentures is lower than rate of return in business. The decision is depended on earning per share devoid of any indication of the risks involved.
Explain the statement: “Generalization and abstraction are nearly synonymous.”?
Transaction costs tend to be decreased and markets are more efficient when: (w) the government subsidizes a good. (x) inter-market price differentials are eliminated through arbitrage. (y) taxes are used to give for social wants. (z) regulations close
Illustrate “freedom is to some extent illusory”?
Suppose that on the basis of a nation's production curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. Relate this information to the following statement: "Thr
Define Direct and inverse relationships?
The first comprehensive work upon economics written within English was authored through Adam Smith in 1776 year and entitled that “An Inquiry within the Nature and Causes of: (1) Laws of Supply and Demand.” (2) Wealth of Nations.” (3
How do households dispose of their income?
How do you account for the dominant role of corporations in the U.S. economy?
Briefly describe Financial Leverage? In what manner it is calculated? What does low or high financial leverage signify?
Explain in short the functions of money? Answer: (A) Medium of exchange: Money can be employed to make payments for all transactions of services and goods.
18,76,764
1930228 Asked
3,689
Active Tutors
1439213
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!