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LEVERAGES (4+ 4+ 4+ 6 + 7 = 25 MARKS) 5. Operating and Financial Leverage. 5.1 What is leverage? And why companies use leverages? 5.2

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LEVERAGES (4+ 4+ 4+ 6 + 7 = 25 MARKS) 5. Operating and Financial Leverage. 5.1 What is leverage? And why companies use leverages? 5.2 What is meant by Operating leverage, and what are the implications of increasing the operating leverage of a business? 5.3 What is meant by Financial leverage, and what are the implications of increasing the financial leverage of a business

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