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Why did the 9/11 attack evoke such a high degree of moral outrage? Analyze it by applying the issue-contingent model.
Operating Leverage
The use of fixed as opposed to variable cost in a firm’s cost structure.
Combined Leverage
Refers to the use of both operating and financial leverage by a company to assess the potential impact on earnings due to changes in sales.
Degree of Financial Leverage
A measure that quantifies the sensitivity of a company's earnings per share to fluctuations in its operating income due to the use of fixed cost financing.
Earnings per Share
A company's net profit divided by the number of its common shares outstanding, indicating the company's profitability on a per-share basis.
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