`One type of leverage affects both EBIT and EPS. The other type affects only EPS.’ Explain this statement.
Questions Define each of the following terms: a. Capital structure: business risk; financial risk b. Operating leverage; financial leverage: break-even point c. Reserve borrowing capacity What term refers to the uncertainty inherent in projections of future ROTC? Firms with relatively high nonfinancial fixed costs are said to have a high degree of what? `One type […]