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.
Can someone help me in finding out the right answer from the given options. The private sector is decomposed into: (1) Businesses and investors. (2) Households and stockholders. (3) Households and investors. (4) Businesses and households.
Elucidate types of unemployment?
Explain the statements: The market system not only accepts self-interest as a fact of human existence.
If the price of a good is given, how does a consumer choose/decide as to how much of that good to purchase?
Elucidate facilitating factors that explain the growth of trade?
need urgent help in business economics, please suggest
Why entertainment tax comes in indirect tax? Answer: Since its burden can be shifted to others.
What are economic resources? What are the major functions of the entrepreneur?
Illustrate major economic flows that link U.S. with nations. Provide an example to illustrate each flow. Explain the relationship between the top and bottom flows.
Contrast how a market system and a command economy try to cope with economic scarcity?
18,76,764
1959218 Asked
3,689
Active Tutors
1446407
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!