At a base sales level of $400,000, a firm has a degree of operating leverage of 2 and a degree of financial leverage of 1.5. The firm's degree of total leverage is ________

A) 3.5
B) 3.0
C) 0.5
D) 1.3


B

Business

You might also like to view...

People with high ______ are responsive to social and interpersonal cues of others.   

A. self-esteem B. self-monitoring C. locus of control D. self-efficacy E. agreeableness

Business

Liquidity ratios measure the ability of a company to survive over a long period of time

Indicate whether the statement is true or false

Business

Which of the following statements is CORRECT?

A. One defect of the IRR method versus the NPV is that the IRR does not take account of the time value of money. B. One defect of the IRR method versus the NPV is that the IRR does not take account of the cost of capital. C. One defect of the IRR method versus the NPV is that the IRR values a dollar received today the same as a dollar that will not be received until sometime in the future. D. One defect of the IRR method versus the NPV is that the IRR does not take proper account of differences in the sizes of projects. E. One defect of the IRR method versus the NPV is that the IRR does not take account of cash flows over a project's full life.

Business

CCPM advocates performing all non-critical activities:

A) As late as possible. B) As early as possible. C) Before starting the critical path. D) After completing the critical path.

Business