Corporate Finance #4 Leverage & Break-Even Analysis
Unleash Financial Potential: Master Leverage and Break-Even Analysis for Growth and Profitability
What you will learn:
Define the concept of leverage and its significance in corporate finance decision-making.Analyze the different types of leverage, including operating leverage, financial leverage, and combined leverage, and their impact on business growth.
Apply leverage ratios and formulas to assess the optimal level of leverage for a business.
Evaluate the benefits and risks associated with leverage and make informed decisions based on leverage analysis.
Understand the concept of break-even analysis and its importance in decision-making.
Differentiate between fixed costs and variable costs and classify costs accordingly for break-even analysis.
Calculate the break-even point and cash break-even point using relevant formulas and techniques.
Analyze and interpret the results of break-even analysis to determine the financial viability of a business.
Apply nonlinear break-even analysis methods to assess the impact of changing variables on break-even points.
Utilize Excel worksheets and financial modeling techniques to conduct leverage and break-even analysis efficiently.
