Discuss the leverage and risk aspects of each structure.
1. Structure A has more less ri...
Business, 30.03.2020 16:28 pattydixon6
Discuss the leverage and risk aspects of each structure.
1. Structure A has more less risk and promises higher lower returns as EBIT increases.
2. B is more less risky since it has a higher lower financial breakeven point.
The steeper slope of the line for Structure A B also indicates greater financial leverage.
Answers: 2
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