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1.What factors would cause a difference in the use of financial leverage for a utility company and an automobile company? 2.Explain how the break-even point

1.What factors would cause a difference in the use of financial leverage for a utility company and an automobile company?

2.Explain how the break-even point and operating leverage are affected by the choice of manufacturing facilities (labor intensive versus capital intensive).

3.What does risk taking have to do with the use of operating and financial leverage?In other words, why is leverage (operating and financial)considered as risky?

4.Discuss the limitations of financial leverage.

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