Business Studies, asked by Greenland2501, 10 months ago

Difference between financial liverage,operating and combined liverage

Answers

Answered by Anonymous

Answer:

The Operating Leverage measures the effect of fixed operating costs, whereas Financial Leverage measures the effect of interest expenses. Operating Leverage influences Sales and EBIT but Financial Leverage affects EBIT and EPS. Operating Leverage arises due to the company's cost structure.

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