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What is the difference between operating leverage and financial leverage in finance?
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- Why is EBIT generally considered independent of financial leverage? Why might EBITactually be affected by financial leverage at high debt levels?Should short-term debt be considered in calculating cost of capital?What leverage and the various debt ratios are used by an organization? What are the benefits and perils of too much leverage?
- Which of the following is not a potential source of financial leverage? Group of answer choices Accounts payable. Long-term debt. Interest payable. Common stock.What is the relationship between risk and return in finance, and how is this reflected in the Capital Asset Pricing Model (CAPM)?How does the capital asset pricing model (CAPM) influence financial decisions regarding risk and return?
