Implications of operating leverage on capital formation in food industry

Finance is the study of how people allocate their assets over time under conditions of certainty and uncertainty. A key point in finance, which affects decisions, is the time value of money, which states that a unit of currency today is worth more than the same unit of currency tomorrow. Finance aims to price assets based on their leverage level, and expected rate of return. Managerial or corporate finance is the task of providing the funds for a corporation's activities. India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. This research paper analysis the implications of operating leverage on capital formation decisions of food industry with reference to some independent and dependent variables such as long term debts, short term debts, total debts, profitability, non-debt tax shields, size of the firm, growth and so on. Based on these variables how the operating leverage plays a role in capital formation decisions.