Multiple Choice
Which of the following is true about the concept of leverage?
A) At the break-even point,operating leverage is equal to zero.
B) Combined leverage measures the impact of operating and financial leverage on EBIT.
C) Financial leverage measures the impact of fixed costs on earnings.
D) Combined leverage measures the impact of operating and financial leverage on EPS.
Correct Answer:
Verified
Related Questions
Q20: If EBIT equals $140,000 and interest equals
Q21: If a firm has fixed costs of
Q22: Which of the following is not true
