Multiple Choice
Which of the following statements is correct?
A) The degree of combined leverage measures the sensitivity of earnings per share into changes in EBIT.
B) A firm's business risk is measured by its variability in earnings per share over time.
C) A firm's degree of combined leverage is the product of its degree of operating leverage and its degree of financial leverage.
D) Total leverage does not consider financial leverage.
Correct Answer:
Verified
Correct Answer:
Verified
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