The document discusses various aspects of financial and operating leverage including: 1) The definitions of capital structure, financial structure, and measures of financial leverage like debt ratio and interest coverage ratio. 2) How financial leverage is used to earn higher returns on fixed-charge funds and magnify shareholders' returns. 3) The relationship between financial leverage, operating leverage, and their combined effect on earnings per share with changes in sales. 4) Examples are provided to calculate the degrees of operating, financial, and combined leverage.