Question: Why does a firm use operating and financial leverage? In what ways does it help the firm, in what ways does it hurt the firm?

Why does a firm use operating and financial leverage? In what ways does it help the firm, in what ways does it hurt the firm?

In what way does management's willingness to assume risk impact the firm?

What is the signaling effect of dividend payments?

What effect does a stock split have on outstanding shares of stock and what is its purpose?

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