7. You are analyzing 2 companies, both of which experienced 8% revenue growth comprised entirely of volume growth. Company A experienced a signicant improvement in margins. Company B experienced less margin improvement that Company A. What conclusions can you draw about the cost structures of the 2 companies? 8. Discuss the difference between nancial leverage and operating leverage. 9. You are analyzing 2 companies, and both companies have identical cost structures each has 40% xed costs and 60% variable costs. Company A experienced 10% revenue growth which resulted in a signicant improvement in margins. Company B also experienced a 10% revenue growth, but much less improvement in margins. What conclusions can you draw regarding what was driving the revenue growth of each company? 10. A company buys a new piece of equipment for $1,000,000. What section of the cash ow statement contains this transaction? 11. List and describe the 3 classification of capital expenditures which were discussed during the lectures. 12. Name 4 factors rating agencies consider when rating a company? 13. List 4 operating risks