_________leverage is concerned with the relationship between earnings before interest and taxes and earnings per share.
A) Variable
B) Financial
C) Total
D) Operating

Question

Quizplus · Accepted Answer

Leverage is a financial concept that relates to the use of debt to finance a business or investment. It is concerned with the impact that changes in the company's earnings before interest and taxes (EBIT) have on its earnings per share (EPS). Therefore, leverage is considered a financial ratio that measures the company's ability to use debt financing to increase its profits.

_________Leverage Is Concerned with the Relationship Between Earnings Before Interest