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.
How is a shift in demand reflected in a demand equation? How is a shift in supply reflected in a supply equation? How is a movement along a demand (supply) curve reflected in a demand (supply) equation?
Cost of debt= (1-tax rate)* interest rate * (debt ÷capital employed)Cost of equity = risk free rate + market premium (equity shareholders funds÷ capital employed)
Adam Smith wrote his Wealth of Nations within part like a refutation of the doctrines: (1) classical liberalism. (2) utilitarianism. (3) mercantilism. (4) physiocracy. (5) laissez faire capitalism.
with the aim of diagrams show the difference between A change in demand and A change in quantity demand
When the production possibilities frontier in a proficient economy is not growing, raising the output of one good always needs: (i) Increasing the output price for the other good. (ii) Bigger amounts of resources. (iii) Decreasing the output of other
Write down the steps carried out for proper control on capital budgeting process?
Question: (a) Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.)
Give brief introduction of the term capital structure? And also write down its principles?
Nature and Scope of Economics: Introduction Economics is a social science that
How a production possibilities curve is a graphical representation of choices?
18,76,764
1924176 Asked
3,689
Active Tutors
1411954
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!