- CFA Exams
- 2022 Level I
- Study Session 10. Corporate Issuers (2)
- Reading 32. Measures of Leverage
Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Learning Outcome Statements PDF Download
1. Business Risk and Operating Leverage a. define and explain leverage, business risk, sales risk, operating risk, and financial risk and classify a risk; b. calculate and interpret the degree of operating leverage, the degree of financial leverage, and the degree of total leverage; c. analyze the effect of financial leverage on a company's net income and return on equity; | |
2. Financial Risk and Financial Leverage a. define and explain leverage, business risk, sales risk, operating risk, and financial risk and classify a risk; b. calculate and interpret the degree of operating leverage, the degree of financial leverage, and the degree of total leverage; c. analyze the effect of financial leverage on a company's net income and return on equity; | |
3. Total Leverage and Breakeven Points d. calculate the breakeven quantity of sales and determine the company's net income at various sales levels; e. calculate and interpret the operating breakeven quantity of sales. | |
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; e. calculate and interpret the operating breakeven quantity of sales. |

Thanks again for your wonderful site ... it definitely made the difference.

Craig Baugh
My Own Flashcard
No flashcard found. Add a private flashcard for the reading.
Add