Asked by
Zixiao Cheng
on Dec 01, 2024
Verified
Financial risk is defined as the expected variation in EBIT.
Financial Risk
The likelihood of experiencing a loss of money in a business operation or investment.
EBIT
A financial metric, Earnings Before Interest and Taxes, calculates a business's income by including all earnings and expenditures with the exception of those from interest and taxes.
- Comprehend the separate ramifications of operating and financial leverage on the hazard faced by businesses.
Verified Answer
MJ
Learning Objectives
- Comprehend the separate ramifications of operating and financial leverage on the hazard faced by businesses.
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