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  • Chapter 8 Operating and Financial Leverage

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    Berham Dahim
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    The document discusses operating leverage and financial leverage in financial management. It defines operating leverage as the use of fixed costs in operations that can increase earnings sensitivity to changes in sales volume. Financial leverage refers to the use of fixed financial charges that increase earnings sensitivity to operating income. The chapter analyzes how these forms of leverage can impact the financial risk and returns of a firm through breakeven analysis and operating and combined leverage.

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    Financial management

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    Chapter_8_Operating_and_Financial_Leverage

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    The document discusses operating leverage and financial leverage in financial management. It defines operating leverage as the use of fixed costs in operations that can increase earnings sensitivity to changes in sales volume. Financial leverage refers to the use of fixed financial charges that increase earnings sensitivity to operating income. The chapter analyzes how these forms of leverage can impact the financial risk and returns of a firm through breakeven analysis and operating and combined leverage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    18 views25 pages

    Chapter 8 Operating and Financial Leverage

    Uploaded by

    Berham Dahim
    The document discusses operating leverage and financial leverage in financial management. It defines operating leverage as the use of fixed costs in operations that can increase earnings sensitivity to changes in sales volume. Financial leverage refers to the use of fixed financial charges that increase earnings sensitivity to operating income. The chapter analyzes how these forms of leverage can impact the financial risk and returns of a firm through breakeven analysis and operating and combined leverage.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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