Operating leverage is easier to control and manage than financial leverage because operating leverage deals with the internal workings of the company while financing deals with outside parties.
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Q72: A company that sells preferred stock and
Q73: The presence of debt and/or preferred stock
Q74: When is it useful or sometimes necessary
Q75: Financial risk applies to both the additional
Q76: A CEO concerned about variability of earnings
Q78: Operating leverage contributes ultimately to the variability
Q79: A company that sells common stock and
Q80: The more fixed-charge securities (such as bonds
Q81: Amalgamated Mining,Inc.has very high operating leverage due
Q82: Operating leverage has to do with
A) borrowing
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