Examveda

Match the items of List-I with the items of List-II, and find out the correct matching.
List-I List-II
a. $$\frac{{{\text{Contribution}}}}{{{\text{EBIT}}}}$$ 1. Financial leverage
b. $$\frac{{{\text{EBIT}}}}{{\left( {{\text{Earning before tax}}} \right){\text{EBT}}}}$$    2. Super-leverage EBIT
c. $$\frac{{{\text{Contribution}}}}{{{\text{EBIT}}}}$$ 3. Operating leverage

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

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

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

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

Answer: Option A


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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