Explain the concept of financial leverage.
What will be an ideal response?
Leverage refers to the concept of increasing earnings through debt financing. If a firm borrows at 6% and earns 10% on assets, the company and its stockholders have benefited from the 4% spread, which is the difference between the two interest rates.
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What is logistics? What functions does it serve?
What will be an ideal response?
Flagstaff Company has budgeted July production of 7,900 units. Variable factory overhead is $1.20 per unit. Budgeted fixed factory overhead is $19,000, which includes $3,000 of factory equipment depreciation. Compute the total budgeted overhead for July.
A. $28,480. B. $23,900. C. $19,000. D. $9,480. E. $25,480.
A(n) __________ gives the mortgagor the right, after a foreclosure, to reacquire property within a statutory limited period
a. interim statute b. right of redemption c. mortgagee relief statute d. right of relief
When reporting upon a review engagement on an entity's management discussion and analysis, the report is ordinarily:
A. A restricted use report. B. Required to include a disclaimer of opinion. C. Included with the entity's report on internal control over financial reporting. D. A general use report.