Foundations of Financial Management Page 1

PPT 5-1

Chapter 5

FIGURE 5-1 Break-even chart: Leveraged firm

Operating and Financial Leverage

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2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

PPT 5-2 FIGURE 5-2 Break-even chart: Conservative firm

PPT 5-3

TABLE 5-2 Volume-cost-profit analysis: Leveraged firm

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2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

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2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

Foundations of Financial Management Page 2

PPT 5-4

PPT 5-5

TABLE 5-3 Volume-cost-profit analysis: Conservative firm

TABLE 5-4 Operating income or loss

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2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

PPT 5-6 FIGURE 5-3 Nonlinear break-even analysis

PPT 5-9

TABLE 5-6 Income statement

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2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

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2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

Foundations of Financial Management Page 3

PPT 5-10 FIGURE 5-5 Combining operating and financial leverage TABLE 5-7 Operating and financial leverage

PPT 5-11

McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, Inc., All Rights Reserved.