Does high operating leverage always mean high business risk, Financial Management

Does high operating leverage always mean high business risk? Explain.

High operating leverage does not all the time mean high business risk. If the companies sales are quite stable after that the variation in operating income would be small even if the degree of operating leverage were large.

Related Discussions:- Does high operating leverage always mean high business risk

Determine the weighted average cost of capital, To evaluate a company using...

To evaluate a company using enterprise discounted cash flow (DCF), we discount free cash flow by the weighted average cost of capital (WACC). The weighted average cost of capital r

Relationship between bond price and time, Relationship between Bond Price a...

Relationship between Bond Price and Time (If Interest Rates are Constant) The bond price changes as the bond moves closer to its maturity. If the bond is quoted

Agency relationship, Solutions to shareholders and government agency proble...

Solutions to shareholders and government agency problemquestion #Minimum 100 words accepted#

Annual effective rate, You have recently won the UniSA "log tossing" compet...

You have recently won the UniSA "log tossing" competition. The prize of $200 is supposed to be used to buy a 50-year subscription to "Log News" This appears to represent a consid

Non-interest rate indexes, Generally, an interest rate or an interest...

Generally, an interest rate or an interest rate index is used as a reference rate for However, through financial engineering, issuers have been able to construct

Compute the expected profit, A drug company has developed a new painkiller ...

A drug company has developed a new painkiller for chronic pains, although it is doubtful whether the new drug actually has any effect. The company conducts a double-blind experimen

Capital asset pricing model, Can you draw Capital asset pricing model with ...

Can you draw Capital asset pricing model with example and explain?????

Market segmentation of the term structure of interest rates, Define the mar...

Define the market segmentation of the term structure of interest rates. Market segmentation: And also the investors’ expectations regarding future interest rates and thei

Risk return relationship, RISK RETURN RELATIONSHIP A business operates...

RISK RETURN RELATIONSHIP A business operates in a market environment, which is not within its control. It is exposed to several dangers from the internal with external sources

., give and explain the seven sources of finance

give and explain the seven sources of finance

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages