The degree of financial leverage is the ratio of ________ to percentage change in EBIT.
A) operating profit
B) percentage change in sales
C) percentage change in EPS
D) long-term debt
Correct Answer:
Verified
Q83: Financial leverage measures the effect of fixed
Q84: A firm has fixed operating costs of
Q85: In theory, a firm should maintain financial
Q86: _ leverage is concerned with the relationship
Q87: As fixed operating costs increase and all
Q89: _ leverage is concerned with the relationship
Q90: Higher financial leverage causes _ to increase
Q91: Fixed financial charges include _.
A) common stock
Q92: An increase in fixed operating costs will
Q93: With the existence of fixed operating costs,
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