`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 […]

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