What is Nancy’s degree of operating leverage?

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 is insiders?

A: An insider is a member of an organization who has unlimited and privileged access to the information…

Q: equity-based compensation contracts.

A: Compensating employees with equity has become the best compensation plan for attracting talented and…

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: What is the Regulation of Syndicates?

A: A group of individuals or organizations that are self-organized and come together to operate or…

Q: Why might purchasing power parity fail to hold?

A: It refers to the relationship which indicates the same cost and same kinds of products in the market…

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: How is private placement beneficial?

A: Private Placement is also referred to as non-public offering.It refers to funding of securities…

Q: DoKnow Co. like to estimate the variable and fixed cost components of its maintenance cost and has…

A: Solution Predicted cost maintenance is the technique that is used to monitor the performance of…

Q: What is Unsecured financing?

A: Whenever a person requires financial assistance, they may contact a financial institution and seek…

Q: What is the payback method? What are its main strengths and weaknesses?

A: Explain the meaning of the payback method.   The payback period is the expected time period which is…

Q: What is the difference between Direct and Indirect Financing?

A: Difference between direct financing and indirect financing are as follows

Q: What is the difference between firm-commitment and stand-by underwriting? What is underwriting…

A: Underwriters play a very critical role in ensuring the fresh issue of securities of the company are…

Q: Define operating leverage with examples and why it is potentially risky.?

A: Operating leverage is used to measure a company’s fixed costs as a percentage of its total costs. A…

Q: What is Basic Calculations of Financial Leverage?  Please provide example.

A: Financial Leverage:It represents that how a company uses its debt to acquire assets. It also shows…

Q: What are the differences between bottom-up and top-down approaches to security valuation? What are…

A: A top-down method to security evaluation starts with an examination of the worldwide and national…

Q: What is the decision rule for payback?

A: Payback period is the period of time taken by the project to recover the investment in such project…

Q: What is the relationship of risk to the investment?

A: There is a direct relationship between risk and return in investment decision making. It means…

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: How does power gain legitimacy and become legitimate authority?

A: A legitimate authority would seem to be one that has the right for its judgments and laws to be…

Q: What is monopoly?

A: In market, there are various types of market structures, monopoly is one of them.  Monopoly market…

Q: What is financial leverage?

A: Capital Structure:   It refers to the combination of debt and equity that constitutes the finances…