7. Ravi and Ishan are talking about Degree of Operating Leverage and Financial Leverage. Ravi says : Degree of Financial Leverage will be lower for firms with higher tax rates Ishan says: Degree of Operating leverage will increase with sales Only Ravi is correct Only Ishan is correct Both are incorrect
7. Ravi and Ishan are talking about Degree of Operating Leverage and Financial Leverage. Ravi says : Degree of Financial Leverage will be lower for firms with higher tax rates
Ishan says: Degree of Operating leverage will increase with sales
Only Ravi is correct
Only Ishan is correct
Both are incorrect
8. The total value of assets in a
i,ii and iii
only ii and iii
only i and iii
9. Companies in an economy are in a process of reducing overtime, and some of the major firms have just decided to make a portion of the workforce temporary. Which of the following could be most likely happening to the inventory to sales ratio and the economic cycle
The inventory to sales ratio will be declining and the business cycle would be close to peaking
The inventory to sales ratio will be increasing and the business cycle would be close to peaking
The inventory to sales ratio will be declining and the business cycle would be close to bottoming
Step by step
Solved in 4 steps
