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. Chapter 13 introduces risk as a capital budgeting factor. As we build on capital budgeting from chapter 12, why is it absolutely necessary to introduce and use risk in our project/investment analysis? Why not just use the weighted average cost of capital as we did in chapter 12? Last, how does the introduction of risk potentially change our decision about a project/investment