Examveda

Financial leverage is measured by:

A. $$\frac{{{\text{EBIT}}}}{{{\text{EAT}}}}$$

B. $$\frac{{{\text{EBIT}}}}{{{\text{EBT}}}}$$

C. $$\frac{{{\text{EAIT}}}}{{{\text{EBT}}}}$$

D. $$\frac{{\text{C}}}{{{\text{EBIT}}}}$$

Answer: Option B


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Related Questions on Business Finance

Match List-I with List-II and select the correct answer:

List-I List-II
a. Modigliani Miller approach 1. Commercial papers
b. Net operating income approach 2. Working capital management
c. Short-term money market instrument 3. Capital structure
d. Factoring 4. Arbitrage

A. a-4, b-3, c-1, d-2

B. a-3, b-4, c-1, d-2

C. a-2, b-3, c-1, d-4

D. a-3, b-2, c-4, d-1