If a firm's degree of total leverage (DTL) is 8.0,which of the following must be correct?
A) The firm must have fixed operating costs.
B) The firm must have fixed financial costs.
C) The firm must have both fixed operating costs and fixed financial costs.
D) The firm must have some fixed costs,but not enough information is given to determine whether the fixed costs are operating,financial,or both.
E) With the information given,we cannot tell whether the firm has any fixed costs (either operating or financial) at all.
Correct Answer:
Verified
Q1: Holding other things constant,the additional funds required
Q2: The projected balance sheet forecasting method produces
Q4: Which of the following is a key
Q5: The degree of operating leverage for ABC
Q6: The degree of financial leverage for ABC
Q7: Which of the following statements is correct?
A)
Q8: Other things held constant,which of the following
Q9: Considering each action independently and holding other
Q10: The degree of financial leverage for Aries
Q11: Assume a portion of a firm's long-term
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