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.
What are the major legal forms of business organization?
I have a problem in economics on Capitalism-Tightly regulate business. Please help me in the following question. The govt. in a purely capitalist state would not: (1) Find out the property rights. (2) Enforce contracts among private parties. (3) Offer
Illustrate the Risks involved with bonds?
Elucidate how to maintain competition?
Elucidate Participants in international trade of U.S. and World Trade?
The state legislature has voted to develop a grant-in-aid policy to try and induce local communities to devote more resources to improving their infrastructure. Town O = Has an operating budget of $2 million; currently spends a tot
Illustrate the several determinants of demand besides price which affect demand?
Illustrate Rational Behaviour of Economic Perspective?
Explain the statement: “The other things equal assumption helps isolate key economic relationships.”?
Explain: “Exchange is the necessary consequence of specialization.”
18,76,764
1933739 Asked
3,689
Active Tutors
1441470
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!