0 of 5 Questions completed
Questions:
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
0 of 5 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Average score |
|
Your score |
|
Business Risk and the Degree of Operating Leverage
Fander is a guitar manufacturer that sells each guitar for $50. The variable cost for each guitar is $15. The company has fixed operating cost of $5000 each month, and interest cost of $3000 each month.
What is the degree of operating leverage of the company if it sells 400 guitars each month?
Financial Risk and the Degree of Financial Leverage
A company recorded an operating income of $50,000 last year and the interest expense was $8,000. What is the degree of financial leverage of the firm?
Financial Risk and the Degree of Financial Leverage
All else equal, the higher the degree of financial leverage for a firm, the ROE increases ___________ when the net income increases.
Degree of Total Leverage
Fander is a guitar manufacturer that sells each guitar for $50. The variable cost for each guitar is $15. The company has fixed operating cost of $5000 each month, and interest cost of $3000 each month.
What is the degree of total leverage of the company if it sells 700 guitars each month?
Breakeven Point
Fander is a guitar manufacturer that sells each guitar for $50. The variable cost for each guitar is $15. The company has fixed operating cost of $5000 each month, and interest cost of $3000 each month.
How many units does the company needs to sell to break even?
Many years ago, I was exactly where you are today—a CFA Level I candidate juggling a demanding full-time career with the daunting CFA curriculum. Coming from a Computer Engineering background, finance was entirely new territory for me. And yes, it was tough!
I struggled with dense textbooks, late-night cramming, and the frustration of concepts that seemed impossible after a long workday. But after passing Level I (barely), I realized something had to change.
Using the Pareto Principle (80/20 rule), I distilled the vast CFA syllabus into essential, easy-to-understand nuggets. I leaned into visual summaries and bite-sized learning sessions that worked around my busy schedule. This smarter approach helped me clear Levels II and III on my first attempts with significantly less stress.
I founded PrepNuggets to share the streamlined strategies and innovative learning methods that transformed my CFA journey. Our mission is simple: leverage technology to make CFA prep more effective, accessible, and enjoyable.
Join the PrepNuggets community today—sign up for your free account, and let our thoughtfully crafted materials propel you toward CFA success without unnecessary overwhelm.
Here’s to your CFA journey!
Keith Tan, CFA
Founder & Chief Instructor, PrepNuggets
Keith is the founder and chief instructor of PrepNuggets. He has a wide range of interests in all things related to tech, from web development to e-learning, gadgets to apps. Keith loves exploring different cultures and the untouched gems around the world. He currently lives in Singapore but frequently travels to share his knowledge and expertise with others.
[theme-my-login show_reg_link=”0″]
[theme-my-login default_action=”register” show_title=”false”]