Examlex
Why is the capacity decision important?
Degree of Financial Leverage
A ratio indicating the degree to which a company uses borrowed funds to finance its operations, affecting potential returns and risk.
EPS
Earnings per share, a key indicator that calculates the portion of a company's profit allocated to each outstanding share of common stock.
Tax Deduction
An expense that a taxpayer is allowed to deduct from taxable income, thereby reducing the overall tax liability.
Financial Leverage
The use of borrowed money (debt) to amplify the potential return of an investment.
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