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Focus on same-store sales

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1) Why might companies focus on same-store sales rather than total sales?

2) Should you invest 2000 today in exchange for 10,000 in 25 years? What would be a main concern? Would your answer change based on who would be re-paying this debt?

3) Airlines are an example of an industry that has high operating leverage. What do you think is the reason for this?

4) If you could borrow all the money you need for a project at 6.5%, does that mean that the cost of capital for this project is going to be 6.5%? Why or why not?

Reference no: EM131628228

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