operating leverage is the outcome of the capital budgeting while financial leverage is the outcome of the capital structure decision.do you agree?​

Answers 1

Explanation:

Financial leverage is concerned with the relationship between the firm's EBIT and its common stock earnings per share (EPS). Operating leverage is concerned with investment activities of the firm. It is determined by the cost structure of the firm. ... It is determined by the capital structure of the firm.

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