Capital structure
Define each of the following terms:
Capital structure; business risk; financial risk
Operating leverage; financial leverage; break-even point
Reserve borrowing capacity
(15-2)
What term refers to the uncertainty inherent in projections of future ROIC?
(15-3)
Firms with relatively high nonfinancial fixed costs are said to have a high degree of what?
(15-4)
“One type of leverage affects both EBIT and EPS. The other type affects only EPS.” Explain this statement.
(15-5)
Why is the following statement true? “Other things being the same, firms with relatively stable sales are able to carry relatively high debt ratios.”
Answer preview to capital structure
APA
269 words
