Combined Leverage 525

Corporate Finance PowerPoint presentation. In this presentation, we will discuss combined leverage, get ready, it’s time to take your chance with corporate finance, combined leverage. Remember when we’re thinking about the term leverage, there’s typically two types of leverage that come into our minds. One is going to be the financial leverage the others the operating leverage the financial leverage, probably the one that pops into most people’s mind, if they’re familiar with leverage that being related to the debt in the organization and the risk and reward related to different levels of debt depending on the circumstances. And then we have the operating leverage, which has to do with the mix between the variable costs and the costs and the in the fixed costs.

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Degree of Operating Leverage 515

Corporate Finance PowerPoint presentation. In this presentation, we will discuss the degree of operating leverage, get ready, it’s time to take your chance with corporate finance, degree of operating leverage. Now remember, when you hear this term leverage, there’s two things that pop into your mind that generally categories of leverage. The first one is probably related to debt debt leverage or financial leverage. And the other related to the cost structure, the one that we’re going to be focusing in on here, the structure between variable costs and fixed costs. So what’s going to be the structure of the variable cost fixed costs, that’s kind of what we’re measuring here, with the degree of operating leverage the fixed costs being the thing that’s going to have more leverage related to it.

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Break Even Analysis 510

Corporate Finance PowerPoint presentation. In this presentation, we will discuss breakeven analysis, get ready, it’s time to take your chance with corporate finance. Break Even analysis includes our fundamental tools for making projections and predictions into the future. Now note, when we think about breakeven analysis, the fundamental calculation within a breakeven analysis will be the break even point. But when we hear breakeven analysis in general, you can think of it that as a more broad kind of perspective, to use some of these tools in order to think about projections into the future. So when you hear breakeven analysis, you’re typically thinking kind of projections, budgeting, future based analysis, as opposed to some financial accounting, which is typically going to be based on the past prior performance.

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