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Capital Structure Interview Question:
Explain Low operating leverage, low financial leverage?
Submitted by: AdministratorThis is also a worst situation where both operating leverage and financial leverage are low which results in undesirable consequences. Low degree of these leverages shows that the amount of fixed costs is very small and proportion of debts in capital is also low. The management in this situation might loose number of profitable opportunities and investments.
Submitted by: Administrator
Submitted by: Administrator
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