Problem 1: What factors would cause a difference in the use of financial leverage for a utlility company and an automobile company?
Problem 2: Explain how the break-even point and operating leverage are affected by the choice of manufacturing facilitites (labor intensive versus capital intensive)?
Problem 3: What does risk taking have to do with the use of operating and financial leverage?
Problem 4: How does the interest rates on new debt influence the use of financial leverage?