Foundations of Financial Management Study Set 5
Quiz 5: Operating and Financial Leverage
Firms with Cyclical Sales Should Employ a High Degree of Leverage
Firms with cyclical sales should employ a high degree of leverage.
Explore answers and all related questions
If economic conditions were expected to be favourable, an investor would likely prefer a firm with a low degree of leverage.
The contribution margin is equal to price per unit minus total costs per unit.
As the contribution margin rises, the break-even point goes down.
Explore all questions
How it work
Terms And Conditions
© 2020-2021 Cozyplus FZ LLC. All rights reserved