Which of the following is true about the concept of leverage?
A) at the break-even point, operating leverage is equal to zero.
B) combined leverage measures the impact of operating and financial leverage on EBIT.
C) financial leverage measures the impact of fixed costs on earnings.
D) combined leverage measures the impact of operating and financial leverage on EPS.
Correct Answer:
Verified
Q12: Financial leverage is concerned with the relation
Q46: If fixed costs rise while other variables
Q49: Which of the following is not true
Q50: The degree of operating leverage may be
Q52: Which of the following is concerned with
Q55: If the business cycle were just beginning
Q66: Firms with a high degree of operating
Q67: The degree of operating leverage is computed
Q74: Firm A employs a high degree of
Q89: When a firm employs no debt
A) it
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents