投资学investment课件-Chap017.pptVIP

17.6 Industry Analysis 1)Business cycles sensitivity analysis Factors affecting sensitivity of earnings to business cycles: Sensitivity of sales of the firm’s product to the business cycles --necessities --income is not a crucial determinant for demand Operating leverage --proportion of fixed cost Financial leverage -- --proportion of debt capital Table 17.6 (P571)Operating Leverage of Firms A and B Throughout the Business Cycle A: FC=$5, VC=$1/unit B: FC=$8, VC=$0.5/unit Suppose the sales volume is the same with the same selling price for both companies at any state of eco