A company's revenue increases by 10% while profit for the year increases by 7.5%. What type of leverage does this company have?
A) a favourable financial leverage
B) a favourable combined leverage
C) an unfavourable combined leverage
D) a favourable operating leverage
Correct Answer:
Verified
Q19: What is the cost of capital compared
Q20: Under which situation will a company use
Q21: What financial technique is used to determine
Q22: What financial technique is used to determine
Q23: What does the following formula calculate?
Contribution margin
--------------------------------------
Contribution
Q25: A company has a favourable operating leverage.
Q26: What does the following formula calculate?
EBIT
-------------------
EBIT -
Q27: A company's EBIT increases by 10% while
Q28: Given the following information, what is the
Q29: What does the following formula calculate?
Contribution margin
------------------------
EBIT
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