If EBIT increases 15%, EPS increases by 30%, debt increases by 45%, and the tax rate declines by 5%, what is the degree of financial leverage?
A) 2
B) 1
C) 9
D) 3
E) 6
A
You might also like to view...
Which of the following practices should interviewers avoid?
a. Taking detailed notes. b. Taping the interview with permission. c. Maintaining eye contact. d. Documenting the results.
Trend analysis of financial statement items can include comparisons of relations between items on different financial statements.
Answer the following statement true (T) or false (F)
To which of the following groups does a landowner owe the highest degree of care?
A) Trespasser B) Licensee C) Invitee D) None of the above
Refer to the financial statements of Black Barn Company. The firm's asset turnover ratio for 2009 is
The financial statements of Black Barn Company are given below.
Note: The common shares are trading in the stock market for $40 each.
A. 1.79.
B. 1.63.
C. 1.34.
D. 2.58.
E. None of the options are correct.