--%>
Assignment Help - homework help

Introduction of the term combined leverage

Give a brief introduction of the term combined leverage? And in what manner it is calculated?

E

Expert

Verified

Combined leverage is a leverage that refers to high profits by reason of fixed costs. It consists of fixed operating expenditures with fixed financial expenditures. It indicates leverage profits and risks that are in fixed quantity. Viable firms select high level of degree of combined leverage while conservative firms select lower level of degree of combined leverage. Degree of combined leverage indicates profits and risks involved in this particular leverage.

The recipe that is employed to compute this is illustrated below-

Degree of combined leverage = Degree of financial leverage x Degree of operating leverage.

   Related Questions in Business Economics

  • Q : Absolute advantage in international

    One early involvement of Adam Smith to the theory of gains by international trade, although later thoroughly revised and refined through David Ricardo, was the conception of: (1) mercantilism. (2) absolute advantage. (3) comparative a

    		•
  • Q : U.S. exports create a demand for

    True or false? “U.S. exports create a demand for foreign currencies; foreign imports of U.S. goods generate supplies of foreign currencies.”  Explain.

    		•
  • Q : Problem on private resource ownership

    Relative to most of the other countries, the United States encompasses historically relied more greatly on: (1) Public resource ownership and private income distribution. (2) Decentralized decision making and private resource ownership. (3) Exports of textiles, automo

    		•
  • Q : Individuals self-interests and broader

    A natural harmony among individuals serving their own self-interests and the broader interests of society was the main theme of the theories of __________, although this concept was not accepted through _________. Determine the correct answer from given options: (w) K

    		•
  • Q : Organization identify the reasons for

    identify the reasons for the formation of organizations

    		•
  • Q : Self-interest theory demonstration by

    The model of _____ was demonstrated by _____ along with the quote, “The loss of a small finger would remain the average European by sleeping which night, ... but, given he never observed them, he will snore with the most profound security over the loss of millio

    		•
  • Q : Describe the term Cost of debt Briefly

    Briefly describe the term Cost of debt?

    		•
  • Q : Illustrate Market Equilibrium of Supply

    Illustrate Market Equilibrium of Supply and Demand?

    		•
  • Q : Demand forecasting consumer's interview

    consumer's interview method for demand forecasting(point to point explain)

    		•
  • Q : Explain determining the types of the

    Explain determining the types of the various products that will be produced?

    		•