The degree of leverage concept is designed to show how changes in sales affect earnings before interest and taxes (EBIT) and earnings per share (EPS). If a 10 percent increase in sales causes EPS to increase from $1.00 to $1.50 and if the firm uses no debt, then what is its degree of operating leverage?
A. 0.5×
B. 1.5×
C. 2.0×
D. 5.0×
E. 7.5×
Answer: D
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Below you are given a profit payoff table involving three decision alternatives and three states of nature. DecisionAlternative States of Nature s1 s2 s3? A -25 10 15B 16-5 8C 15 25 -10? The probability of occurrence of s1 is .1 and the probability of occurrence of s2 is .3. The expected value of the best alternative is
A. 4.5. B. 69.5. C. 7.5. D. 9.0.
Junior Bodway, Inc., has provided the following budgeted data: Sales 10,000unitsSelling price$50per unitVariable expense$30per unitFixed expense$180,000 What is the company's break-even point in sales dollars?
A. $500,000 B. $300,000 C. $450,000 D. $180,000
A ________ firewall controls the traffic between a personal computer or workstation on one side and the Internet or enterprise network on the other side
What will be an ideal response?
A database engine converts logical requests from users into their physical equivalents by interacting with other components of the DBMS
Indicate whether the statement is true or false