Solved

Because the Degree of Total Leverage Is Multiplicative and Not

Question 47

Multiple Choice

Because the degree of total leverage is multiplicative and not additive, when a firm has very high operating leverage it can moderate its total risk by


A) using more financial leverage.
B) increasing EBIT.
C) using a lower level of financial leverage.
D) increasing sales.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions