Question: Chapter 5 is all about leverage, Operating Leverage and Financial Leverage. Discuss the general concept of leverage, how we may use it in everyday lives

Chapter 5 is all about leverage, Operating Leverage and Financial Leverage. Discuss the general concept of leverage, how we may use it in everyday lives and in the context if Corporate Finance. What are the impacts, consequences of Operating Leverage (man vs machine) and Financial Leverage (debt vs equity) on:

The Balance Sheet
Top of the Income Statement, Operating Income
Bottom of the Income Statement, Earnings After Taxes and Earnings Per Share

Try to incorporate the Toyota article in your discussion.

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