Questions from Financial Management

Q: When you are considering two different financing plans, does being at

When you are considering two different financing plans, does being at the level where earnings per share are equal between the two plans always mean you are indifferent as to which plan is selected?

Q: What factors would cause a difference in the use of financial leverage

What factors would cause a difference in the use of financial leverage for a utility company and an automobile company?

Q: Explain how the break-even point and operating leverage are affected

Explain how the break-even point and operating leverage are affected by the choice of manufacturing facilities (labor intensive versus capital intensive).

Q: Discuss the limitations of financial leverage.

Discuss the limitations of financial leverage.

Q: Explain why operating leverage decreases as a company increases sales and shifts

Explain why operating leverage decreases as a company increases sales and shifts away from the break-even point.

Q: Dodge Ball Bearings had sales of 10,000 units at $

Dodge Ball Bearings had sales of 10,000 units at $20 per unit last year. The marketing manager projects a 30 percent increase in unit volume sales this year with a 5 percent price decrease (due to a p...

Q: Discuss the various uses for break-even analysis.

Discuss the various uses for break-even analysis.

Q: What role does depreciation play in break-even analysis based on

What role does depreciation play in break-even analysis based on accounting flows? Based on cash flows? Which perspective is longer term in nature?

Q: What does risk taking have to do with the use of operating

What does risk taking have to do with the use of operating and financial leverage?

Q: How does the interest rate on new debt influence the use of

How does the interest rate on new debt influence the use of financial leverage?