Mr Chad Cheatem and Mr Hiram Howe have gotten into a massive argument about the merits and risks of financial and operating leverage. Mr Cheatem argues that firms can be made more profitable by maximising the operating leverage. Mr Howe argues that operating leverage is too risky and that it is safer for firms to enhance the earnings per share by maximising their financial leverage.
Mr Dewey has asked you to research financial and operating leverage on the internet and to provide a 1½ page review and evaluation of the merits and risks of financial and operating leverage. A Full Service Creative Accounting Firm Loopholes Located Books Juggled Taxes Evaded Funds Diverted Money Laundered Shortages Hidden Pensions Plundered Credit Denied Parking Validated Bankruptcies our Specialty!