How do the various types of operating and financial


1. How do the various types of operating and financial leverage impact a company? Provide examples to support your views. What do you think is the appropriate method for a company to determine the amount of leverage it should possess?

2. Inventory turnover is an important measure of how a firm is managing its current assets, but differs among firms. For example, the inventory turnover for a grocery store will be much higher than a furniture store. Why might this be the case?

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Financial Management: How do the various types of operating and financial
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