Operating leverage effect
Briefly explain the operating leverage effect and the reason for it to occur? What are the advantages and limitations of high operating leverage?
Expert
Operating leverage effect is a phenomenon where a small variation in sales triggers a relatively large variation in operating income. It is due to the presence of fixed operating costs. The advantages of high operating leverage are that if sales are increasing operating income will go up more quickly. The ill-effects are that declining sales will result in operating income to drop more quickly, including negative values.
When was quantitative finance the domain of either economists or applied mathematicians?
Assume that the treasurer of IBM contains an extra cash reserve of $1,000,000 to invest for six months. The six-month interest rate is 8% per annum in the U.S. and 6% per annum in Germany. Now, the spot exchange rate is DM1.60 per dollar and the six-month forw
Presently, the spot exchange rate is $1.50/£ and the three-month forward exchange rate is $1.52/£. The interest rate of three month is equal to 8.0% per annum in the U.S. & 5.8% per annum in the U.K. One can borrow as much as $1,500,000 o
Explain Adaptive Market Hypothesis of Andrew Lo.
Explain Treasury bill and risk involved with it.
What are the typical types of Efficient Markets Hypothesis? Explain.
What is Arbitrage?
Describe multinational corporations (MNCs) and economic roles do they play?A multinational corporation (MNC) can be described as a business firm incorporated in one country which has production & sales operations in several other countries.
Normal 0 false false
Which model is required for interaction of many companies regarding the process of default?
18,76,764
1956089 Asked
3,689
Active Tutors
1456160
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!