Business Studies, asked by Greenland2501, 1 year 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.

Previous Question

Next Question

Similar questions

English, 6 months ago

what does helen say about the first experience with the writing words on her hand ? does she understand that it is beginning of her formal education ?

Chinese, 6 months ago

THE CLIMATE _________ . PLEASE TELL PLEASE HELP PLEASE...

English, 6 months ago

name any four heavenly objects that we see in night sky ...

Math, 1 year ago

What is algebraic transformation in compiler designing?

Accountancy, 1 year ago

Difference between capital account current account and reserve account in hindi...

Science, 1 year ago

what is ment by saying that non metal are brittle...

Environmental Sciences, 1 year ago

Aquatic Habitat comprise of ________ and ________...

History, 1 year ago

what led to the divisions of bolsheviks and mensheviks...