A company's EBIT increases by 10% while its profit for the year increases by 16%. What kind of leverage does this company have?
A) a favourable operating leverage
B) a favourable financial leverage
C) a declining leverage
D) a favourable combined leverage
Correct Answer:
Verified
Q22: What financial technique is used to determine
Q23: What does the following formula calculate?
Contribution margin
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Contribution
Q24: A company's revenue increases by 10% while
Q25: A company has a favourable operating leverage.
Q26: What does the following formula calculate?
EBIT
-------------------
EBIT -
Q28: Given the following information, what is the
Q29: What does the following formula calculate?
Contribution margin
------------------------
EBIT
Q30: What is the combined leverage of a
Q31: Under what economic conditions should a company
Q32: What do money markets deal with?
A) loans
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