-The table above shows the exchange rates between various currencies and the U.S. dollar. Between 2015 and 2016, the U.S. dollar ________ against the Euro and ________ against the Japanese yen.
Definitions:
Financial Leverage
Utilizing borrowed capital to amplify the possible returns on an investment.
Operating Leverage
An indicator of the degree to which sales growth affects operational profit, showing the ratio of a company's fixed costs compared to its variable costs.
Interest Expense
The cost incurred by an entity for borrowed funds, often reported on the income statement.
Fixed Operating Costs
Fixed operating costs refer to expenses that do not change in proportion to business activity levels, such as rent, salaries, and insurance premiums.
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