According to a Chief Financial Officer of a listed company, she thinks that financial leverage is more effective than operating leverage in the real world as one can use financial derivatives to manage the risk accordingly. Do you agree with her? (Not more than 750 words)

According to a Chief Financial Officer of a listed company, she thinks that financial leverage is more effective than operating leverage in the real world as one can use financial derivatives to manage the risk accordingly. Do you agree with her? (Not more than 750 words)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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According to a Chief Financial Officer of a listed company, she thinks that financial
leverage is more effective than operating leverage in the real world as one can use financial
derivatives to manage the risk accordingly. Do you agree with her? (Not more than 750
words)

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