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Degree of total leverage can be applied in measuring change in...

This question belongs to Commerce Financial Management
Financial Management
?

Degree of total leverage can be applied in measuring change in _________.

Answer & Solution
Correct Answer: Option C
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.
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2 Comments
Krishna Kumar
Krishna Kumar 5 years ago
Sorry. I thought it was DFL.
Krishna Kumar
Krishna Kumar 5 years ago
Option B is right.

DFL= % Change in EPS / % Change in EBIT
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