Difference between operating leverge and financial leverage


Problem: Read the document paper: American Banker. What is operating leverage, exactly?

By Davenport, Todd.

On the basis of the reading of the above information, answer the following questions:

Q1. What is the author's focus?

Q2. What points is the author making?

Q3. How does the authors points apply to financial management?

Q4. What is the difference between operating leverge and financial leverage?

Q5. What is the author's conclusion, findings or recommendation?

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Finance Basics: Difference between operating leverge and financial leverage
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