Question

1) IRR is used by investors to: a) Determine the amount of operating leverage in a company b) Determine the dollar amount of how much money the investor will make c) Determine the percentage of debt the company has versus shareholders' equity 55 03 d) Determine the annual percentage return the investor will receive based on the time value of money e) None of the above that 2) Angel investors are: a) Accredited investors boboc loco b) Primarily individuals c) Family offices d) Executives whose tech companies have had a successful exit e) All of the above

Answer 1

Step-by-step explanation:

IRR is used by investors to determine the amount of operating leverage in a company. thus, the answer is A.

Operating leverage is a measure of how much a company's operating income changes to a change in its sales revenue. it is calculated as the ratio pf fixed costs to variable costs.

IRR is commonly used by investors to evaluate the profitability of an investment opportunity. it is the expected rate of return on an investment on the initial investment amount and the cash flows generated by the investment.

while IRR and operating leverage are important to evaluate companies and by serving different purpose by calculating different formulas.