The effect of financial leverage is such that an increase in a firm's earnings before interest and taxes (EBIT) results in a more than proportional increase in the firm's earnings per share (EPS), while a decrease in the firm's EBIT results in a less
than proportional decrease in EPS.
Indicate whether the statement is true or false
FALSE
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During the ________ step of the selling process, the salesperson tells the value story to the buyer, showing how the company's product or service solves the customer's problems
A) prospecting B) preapproach C) presentation D) closing E) follow-up
In using the variable cost concept of applying the cost-plus approach to product pricing, what is included in the markup?
A) Total costs plus desired profit B) Desired profit C) Total selling and administrative expenses plus desired profit D) Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit
________ is a daily settlement feature of the currency futures exchange in which profits and losses are paid over every day at the end of trading
A) Open interest B) A margin call C) Marking to market D) A maintenance margin
Of the following financial intermediaries, which holds the least liquid assets?
A) Property and casualty insurance companies B) Life insurance companies C) Money market mutual funds D) Commercial banks