A company with a degree of operating leverage of 2.0 and a degree of financial leverage of 3.0, has a degree of total leverage closest to:
A) 0.7
B) 1.0.
C) 5.0.
D) 6.0

Name: A company with a degree of operating leverage of 2.0 and a degree of financial leverage of 3.0, has a degree of total leverage closest to: A) 0.7 B) 1.0. C) 5.0. D) 6.0
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The degree of total leverage is calculated by multiplying the degree of operating leverage by the degree of financial leverage: 2.0 * 3.0 = 6.0.

A Company with a Degree of Operating Leverage of 2