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How would the overuse of financial leverage be detrimental to a firm?
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Can financial leverage be zero?
Yes, it is possible for financial leverage to be zero. Whomever is wanting to control or buy/sell an asset would be required to put up the entire cost of the contract. For example, if you wanted to buy a house that was worth $200,000, if you put down $20,000 and took the rest out in a loan, that would be $200,000 / 20,000 = 10 or 10:1 leverage. With zero leverage, or 1:1 leverage, reusing the example above, you would be required to put up the entire $200,000 to buy the house. Not bad if you have the entire $200,000 to put up, and this would guarantee that you have fully covered the cost of the asset you are purchasing. Usually most people favor leverage, so that they can use the money to do other things. Cash is still king, and you usually want to hold on to as much of it as practically possible.
How might an organizational evaluation be beneficial how might it be detrimental?
When an evaluation is not performed the company could not see the important factor that are missing, that would could be detrimental in a profit or losses.
Financial project on Financial planning and forecasting?
A project that would accurately showcase financial planning and forecasting would be a budgeting project. A budget would clearly show the value in planning and being able to predict future financial costs.
How would you interpret financial information correctly?
· principles you would apply to interpreting financial information correctly?
What is the purpose of leverage within an organization?
There are many types of leverage in an organization. - It could mean to leverage your financing; This means that you put in "some" of your own money into the organization and then borrow the rest from a bank or investors or? This allows you to grow bigger or faster than you would be able to on your own. It also increases the risk associated with your business. If you do not structure it properly or if your income is not sufficient to meet the financial obligations created by leveraging your business you can get into financial trouble. - It could mean to leverage yourself; This means you are going to hire people to do some of the jobs you normally do so that you can get more done. Most business is built around solving a problem and being able to make a profit from charging people to solve that problem. If you do a great job, demand will grow for your product or service beyond what you are able to handle by yourself so you need to leverage yourself or your time by adding employees. One of the keys to going from a successful small company to a successful large company is your ability to solve a problem for many more people "profitably". You can also leverage yourself by developing systems to help you with the work. A website can help you find and educate your clients about your offering, give them some preliminary information and guide them to a point of wanting to buy from you, all without you talking to them. There are many other forms of leverage in an organization. You need to be more clear in your definition if you want a more specific answer that is not listed above..
If a firm has the lowest possible degree of operating leverage and the lowest degree of financial leverage what would the DOL and DFL equal?
both are 1
Can financial leverage be zero?
Yes, it is possible for financial leverage to be zero. Whomever is wanting to control or buy/sell an asset would be required to put up the entire cost of the contract. For example, if you wanted to buy a house that was worth $200,000, if you put down $20,000 and took the rest out in a loan, that would be $200,000 / 20,000 = 10 or 10:1 leverage. With zero leverage, or 1:1 leverage, reusing the example above, you would be required to put up the entire $200,000 to buy the house. Not bad if you have the entire $200,000 to put up, and this would guarantee that you have fully covered the cost of the asset you are purchasing. Usually most people favor leverage, so that they can use the money to do other things. Cash is still king, and you usually want to hold on to as much of it as practically possible.
Are financial incentives more dangerous to a scientists objectivity than other conflicts of interest?
I would say yes... Promising scientists financial reward if they formulate a specific product - can lead to 'shortcuts' which could be detrimental to people.
How would you use the word detrimental in a sentence?
The drink was detrimental to his health.More factories will prove detrimental to the environment.
A muscle injury resulting from overuse or overstretching?
Strains are common muscle injuries caused by overuse or overstretching.
How do you use detrimental in a sentence?
Detrimental is an adjective used to describe something that is damaging, or harmful. The proper way to use it in a sentence would be when describing an event, or item, or activity (etc.) that will, can or is currently damaging another object or person. For example, saying "Smoking is detrimental to your health," would be one way to use it. In this case, smoking would be the activity that you are describing as detrimental and your health would be the other "object" of which it is detrimental to.
How would you put detrimental in a sentence?
Detrimental = causing harm or damageeg His poor spelling was detrimental to his chances of getting a good jobeg The bad weather has had a detrimental effect on the crops this year.Mr. Valle says using sentences from the internet for homework, could be detrimental to your grade.
A sentence using the word detrimental?
John did hard work without detriment to his health.
What are advantages of leverage?
Leverage let you buy more shares with less money. For example if you want to buy 100 Barclay's shares at 200p you would need £200 to do so, where's if you have leverage (let's say you pay 10%) then you would need only £20 to buy them. Where's leverage increases your earnings potential it also increases your losses. Try http://www.IndependentInvestor.co.UK for more information on leverage and available brokers.
Can you steal a platypus?
No. This would be illegal, foolish and detrimental to the good of the platypus.
Operating leverage results from what?
Operating leverage generally refers to revenues growing faster than expenses. This would be positive leverage. Companies with a largely fixed expense base have a lot of operating leverage (in both directions). If revenues are growing but expenses are flat, operating margins increase (positive operating leverage). If revenues decrease while expenses remain flat, operating margins decrease (negative operating leverage).
How might an organizational evaluation be beneficial how might it be detrimental?
When an evaluation is not performed the company could not see the important factor that are missing, that would could be detrimental in a profit or losses.
