LS2530: Distinguish between Operating Leverage and Financial Leverage. What will be the effect of small change in Sales on Net Income, Return on Equity and Earnings Per Share if both these leverages are considerable? Explain.

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Question: Distinguish between Operating Leverage and Financial Leverage. What will be the effect of small change in Sales on Net Income, Return on Equity and Earnings Per Share if both these leverages are considerable? Explain.

 


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