#### Learning Outcome Statements

My Note:

1. Business Risk and Operating Leverage *a. define and explain leverage, business risk, sales risk, operating risk, and financial risk and classify a risk;*
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b. calculate and interpret the degree of operating leverage, the degree of financial leverage, and the degree of total leverage;*
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c. analyze the effect of financial leverage on a company's net income and return on equity;*
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2. Financial Risk and Financial Leverage *a. define and explain leverage, business risk, sales risk, operating risk, and financial risk and classify a risk;*
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b. calculate and interpret the degree of operating leverage, the degree of financial leverage, and the degree of total leverage;*
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c. analyze the effect of financial leverage on a company's net income and return on equity;*
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3. Total Leverage and Breakeven Points *d. calculate the breakeven quantity of sales and determine the company's net income at various sales levels;*
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e. calculate and interpret the operating breakeven quantity of sales.*
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4. The Risks of Creditors and Owners *d. calculate the breakeven quantity of sales and determine the company's net income at various sales levels;*
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e. calculate and interpret the operating breakeven quantity of sales.*
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