Describe financial leverage and low operating leverage
Describe briefly high financial leverage, low operating leverage?
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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.
Briefly describe cost of equity shares? And also write down way to evaluate the cost of equity shares?
What are the reasons for change in expanded production possibilities with women?
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Describe Spillovers and externalities?
Normal resident: The persons or an institution who lives in a country and whose centre of interest lies in that country is termed as a normal resident of that country.
Why does a demand curve slope downward?
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