Explain this statement: “Using leverage has both good and badeffects.”

Q: What are the implications of the weak‐form, semi-strong-form, and strong-form of the EMH for…

A: The Efficient Market Hypothesis (EMH) describes a stock market that is both operationally and…

Q: What is the benefits and draw backs of long straddle strategy?

A: A long straddle is when the investor buys both a call and a put option on the same stock, with the…

Q: What does this statement mean? One type of leverage affects both EBIT and EPS. The other type…

A: Operating leverage is based on the cost structure of the company. It is the extent of fixed and…

Q: Define degree of operating leverage.

A: The degree of operating leverage (DOL) is a financial ratio that measures the sensitivity of a…

Q: What are the advantages of the direct write-off method? And Explain Please.

A: Direct write-off method is an effective way for a company’s business to recognize bad debt. Bad debt…

Q: What is Operating Leverage and is it good or bad?

A: It can be characterized as how much a firm brings about a mix of fixed and variable expenses. In…

Q: Are these good advantages and disadvantages about RRSP’s? What can I include and remove?

A: RRSP or registered retirement savings plan is a retirement savings plan for employees and self…

Q: Define the term leverage. And method of computing degree of leverage.

A: Financial Accounting:- The term financial accounting includes recording, summarizing and reporting…

Q: ccording to Miller and Modigliani, it is at really determines a firm's value.

A: According to M&M, value of firm is the sum of present value of all future cash flows.

Q: Define degree of operating leverage (DOL)

A: Degree of Operating Leverage (DOL): Degree of Operating Leverage (DOL) is a ratio of leverage that…

Q: Describe the strengths and weakness of payback method.

A: Definition:   Payback method: Payback method refers to the method which measures the time period…

Q: What is NUBD’s degree of operating leverage?

A: Degree of operating leverage shows how operating income of the business will change as a, result of…

Q: advantages and disadvantages of the scattergram method as compared to the high-low method?

A: Solution High-low method takes high level activity and low level activity and measure the total cost…

Q: ?Which of the following statements about operating leverage is false

A: Operating leverage: Operating leverage can be defined as the measure used to identify the increase…

Q: Explain this statement: Using financial leverage has both good and bad effects.

A: financial leverage is the process of borrowing capital to make an investment, with the assurance…

Q: Explain the effect of leverage on EPS and ROE and what is the break-even EBIT?

A: Leverage refers to the debt amount a company uses in order to finance its assets. EPS refers to…

Q: Define the Sortino ratio and explain its advantage

A: Ratio analysis is referred to as the quantitative method for gaining an insight with relate to the…

Q: How weak reserch culture have an affect on Low potential investment? Explain in detail.

A: The low potential investment is also known as the low-risk investment. It refers to the investment…

Q: Explain the parameters or situations used to determine if the operating and financial leverages are…

A: Operating leverage is based on the cost structure of the company. It is the extent of fixed and…

Q: What are the benefits and drawbacks of turnkey systems?

A: Here is the Answer

Q: “One type of leverage affects both EBIT and EPS. The other type affects onlyEPS.” Explain this…

A: Leverages mean leakage. Leverages word used in corporate for fixed cost because due to fixed cost…

Q: What is the meaning of operating leverage?

A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…

Q: What is the major disadvantage of the high-low method?

A: High-low method: High-low method is a method of calculating the variable cost and the fixed cost of…

Q: How do you define leverage?

A: Solution:- Leverage means as follows under:-

Q: What is operating leverage?

A:

Q: What exactly are the advantages and disadvantages of turnkey systems?

A: Here are the advantages and disadvantages of turnkey systems:

Q: What are the advantages and disadvantages of XERO?

A: XERO is cloud-based software of accounting that suite for small businesses, medium businesses, and…

Q: Usually, which outweighs the other in decentralization—advantages or disadvantages?

A:

Q: What is Linda's degree of operating leverage?

A: Operating Cost is the efficiency ratio. It calculates the portion of the contribution covered by…

Q: What is operating leverage? Give three examples?

A: Operating leverage:

Q: what are the benefits/risks of financial leverage?

A: Financial leverage is a condition wherein a company raises funds through the issue of additional…

Q: HAT ARE THE TYPES OF LEVERAGE? HOW ARE THEY CALCULATED AND WHAT DO THEY IMPLY?

A: Leverage is the technique of risk evaluation in a business. There are three types of Leverage…

Q: In what ways do turnkey systems have advantages and disadvantages that you should know about?

A: Introduction: Under a turnkey system, the firm designs, constructs, runs, and transfers a production…

Q: What is meant by the term operating leverage?

A: Definition: Operating leverage: Operating leverage is an outcome of using fixed costs to obtain a…

Q: What is Nancy’s degree of operating leverage?

A: Formula used: Degree of operating leverage = contribution margin / Operating income

Q: explain two ways mangers can increase roi

A: Return on Investment (ROI) Return on Investment which is used to measure the key performance in the…

Q: How is breakeven analysis different from CVP analysis?

A: Breakeven analysis: It helps to analyze the break-even level of company that is, the level of…