Describe financial leverage and low operating leverage
Describe briefly high financial leverage, low operating leverage?
Expert
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.
Illustrate the advantage of corporate form of organization?
Critically evaluate: “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”
What are the criteria of issuing stocks or bonds?
What happens in the resource markets?
Cingular and Alltel involve in aggressive and expensive advertising for cell-phones. A reason for this advertising may be: (1) attempts to increase market share. (2) predatorily drive other firms by the market. (3) to increase the use of cell phones.
What do you mean by Shuffling the Deck?
Who owns the factors of production and the method used to coordinate economic activity?
Elucidate how Personal income tax is a major source?
Elucidate the gains that have occurred using the resources as before specialization?
For rapid growth of world trade what are the factors of account since the Second World War?
18,76,764
1922061 Asked
3,689
Active Tutors
1459807
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!