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Let us assume that you are considering starting a number of businesses within the next 5 years (work gym facility, clothing boutique, an internet based high end men’s shoe store). From a financial perspective, it is important to take into account financial leverage when conducting your analysis prior to committing to the business (operating/ financial). What specifically are you looking for in your analysis (example: high/ low operating leverage, high/low financial leverage)? What would you expect and prepare for each of the businesses in terms of the financial leverage?

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