Degree of total leverage can be applied in measuring change in _________.
A. EBIT to a percentage change in quantity
B. EPS to a percentage change in EBIT
C. EPS to a percentage change in quantity
D. Quantity to a percentage change in EBIT
Answer: Option C
Solution(By Examveda Team)
Degree of total leverage can be applied in measuring change in EPS to a percentage change in quantity. Degree of total leverage is the ratio of percentage change in earnings per share to percentage change in sales revenue.This Question Belongs to Commerce >> Financial Management
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Comments ( 2 )
Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
Sorry. I thought it was DFL.
Option B is right.
DFL= % Change in EPS / % Change in EBIT