The degree of combined leverage is equal to the degree of operating leverage ____ the degree of financial leverage.
A) added to
B) divided by
C) multiplied by
D) subtracted from

Question

Quizplus · Accepted Answer

The degree of combined leverage is calculated by multiplying the degree of operating leverage with the degree of financial leverage. Therefore, the correct choice is C, "multiplied by."

The Degree of Combined Leverage Is Equal to the Degree