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.
Nature and Scope of Economics: Introduction Economics is a social science that
Define the following terms?
Briefly state the pros and cons of Corporation?
Q X= 600- 6PX + 20I +0.4PY c. Suppose PX increases by 10%, by what percentage would sales decrease? Explain how this price increase affect total revenues from good X.
What are the dependencies in U.S. and World Trade?
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good. Answer:
Describe Quasi-public goods?
Briefly state the pros and cons of Proprietorship?
Economic efficiency is present while the: (w) economic system is a pure socialist system. (x) resources obtainable are slightly wasted. (y) value of output is maximized, specified restricted resources. (z) utilization of resources is minimized. <
True or false? “U.S. exports create a demand for foreign currencies; foreign imports of U.S. goods generate supplies of foreign currencies.” Explain.
18,76,764
1951266 Asked
3,689
Active Tutors
1457407
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!