Multiple Choice
Financial leverage amplifies relative changes in EBIT into larger relative changes in ROE and EPS, operating leverage amplifies:
A) relative changes in EBIT into larger relative changes in sales revenue.
B) relative changes in sales revenue into larger relative changes in EBIT.
C) relative changes in sales revenue into larger relative changes in ROE and EPS.
D) relative changes in ROE and EPS into larger relative changes in EBIT.
Correct Answer:
Verified
Correct Answer:
Verified
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