Written with graceful simplicity, The Big Wave won the Childrenâs Book Award of the Child Study Association of America when it was first released. This ebook features an illustrated biography of Pearl S. Buck including rare images from the authorâs estate. Read on Scribd mobile: iPhone, iPad and Android.
Well, the âadvantageâ of increased financial leverage is a potentially higher return on equity. The disadvantage, on the other hand, is that the business is now riskier as it is financed with more debt (when revenue falls for unexpected reasons, there's now a whole lot of interest that still has to be paid).
(True or False) The degree of financial leverage gives an indication of how a change in EBIT will affect EPS. True (True or False) Other things held constant, if a firm operates at a profit and sales increase, the degree of financial leverage will decline. True (True or False) Other things held constant, a high degree of total leverage will mean that a relatively small change in sales will result in a large change in EPS.