Operating leverage shows the effect on residual net income of long term funds bearing fixed charges.
Reveal answer
Fill a bubble to check yourself
Keep practicing — related questions
- The situation is to have a high financial leverage and low operating leverage.
- It is risky to have a high operating leverage since even a slight fall in sales would result in a dispropor...
- Composite leverage explains change in taxable income on account of change in sales.
- Match the following: | || |---|---| | List - I | List - Il | | (a) The presence of fixed cost in the cost s...
- Issue of bonus shares affects the total capital structure of the company.
- Consider the following statements regarding meta-xylem: (a) Later formed xylem (b) Bears narrow vessels (c)...
- The book value of investment is Rs. 1, 20,000 and investment fluctuation fund is appearing at Rs. 15,000. T...
- The method in which a fixed amount is charged every year as depreciation is called