The total leverage measures the combined effect of operating and financial leverage on the firm's risk.
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Q61: Whenever the percentage change in EBIT resulting
Q64: In general, the greater the firm's operating
Q65: Operating leverage may be defined as the
Q67: When a firm has fixed operating costs,
Q73: The base level of sales must be
Q74: Whenever the percentage change in earnings before
Q74: Financial leverage may be defined as the
Q77: The closer the base sales level used
Q79: The degree of operating leverage will increase
Q80: Total leverage exists whenever the percentage change
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