1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kolbaska11 [484]
3 years ago
10

"The degree of financial leverage is the ratio of​" ________ to percentage change in EBIT. A. operating profit B. percentage cha

nge in sales C. longminus term debt D. percentage change in EPS
Business
2 answers:
Luda [366]3 years ago
5 0

Answer:

D. percentage change in EPS

Explanation:

Leverage is an investment strategy of using borrowed money specifically, the utilization of varied financial instruments or borrowed capital to increase the potential return of an investment. Leverage also can be the quantity of debt a firm uses to finance assets. When one refers to a corporation , property or investment as "highly leveraged," it means item has more debt than equity.

The concept of leverage is employed by both investors and corporations . Investors use leverage to significantly increase the returns which will be provided on an investment. They lever their investments by using various instruments that include options, futures and margin accounts. Companies can use leverage to finance their assets. In other words, rather than issuing stock to boost capital, companies can use debt financing to take a position in business operations in an effort to extend shareholder value.

One can calculate the degree of operating leverage by dividing the share change of a company's earnings per share (EPS) by its percentage (%) change in its earnings before interest and taxes (EBIT) over a period.

A better degree of operating leverage shows a better level of volatility during a company's EPS.

Radda [10]3 years ago
3 0

Answer:

The correct answer is D. percentage change in EPS.

Explanation:

The degree of operating leverage and the degree of financial leverage are two indicators used in the fundamental analysis to determine the sensitivity of income in relation to fluctuations in another variable. The degree of operating leverage quantifies the relationship between earnings before interest and taxes (EBIT), while the degree of financial leverage quantifies the relationship between earnings per share (EPS) and EBIT.

Financial leverage consists of the use of external funds of the company to allocate to investments. To put it another way, the investor increases the amount invested by using external resources (debts) that is added to the own resources in order to obtain greater profitability by increasing the total amount invested.

You might be interested in
While approaching a group of colleagues, Patrice overheard what she believed were inappropriate comments about another team memb
aivan3 [116]

Answer:

The question is incomplete, the options are missing. The options are the following:

a) Suggest to Patrice that spreading negative information learned from eavesdropping is not healthy for the workplace.

b) Thank Patrice for speaking up and forward the item to a neutral third party for handling.

c) Immediately fire the team members who made the comments.

d) Contact the team member who was the subject of the comments to see if he or she was offended.

e) Thank Patrice for her input, but based on the harmlessness of the situation, take no further action.

And the correct answer is the option B: Thank Patrice for speaking up and forward the item to a neutral third party for handling.

Explanation:

To begin with, these kind of situations are most common than expected in the workplace so that is why that nowadays exist a lot of seminars about certain subjects that involves the behavior in the organization and furthermore there is the regular action of the Human Resources Department that takes cares of all the penalties and the solutions when it comes to subjects regarding the employees of the business and their relationship both with each other and with the company. So the correct way to act in this scenario would be to thank Patrice and tell her that the manager would inform to the Human Resources Department about it, being this last one a third party in the situation itself.

6 0
3 years ago
Businesses across the country are starting to install extra insulation in their buildings and warehouses. Households are now dec
8090 [49]

Answer:

The answer is: B) Equilibrium price and quantity of oil will decrease.

Explanation:

When a company or a family installs extra insulation in their buildings or homes, then they will end up spending less money on both their electricity and heating bills. That will result in a lower demand for oil, so the price of oil will go down. As oil prices go down, the oil companies will decrease the oil supply until a new equilibrium point is reached.

4 0
3 years ago
Question 6 (multiple choice)
Tasya [4]
It may be A but if it isn't I'm sorry
3 0
3 years ago
Read 2 more answers
Last quarter, a retailer sold 8,000 T-shirts, 7,000 of which were sold directly from on-hand inventory. This retailer's ________
Lady bird [3.3K]

This retailer's Fill rate was 88 percent.

Fill rate, also called order fulfillment fee, is the percentage of orders that you could ship from your to-be-had inventory with no misplaced sales, backorders, or stockouts. it is a very good mirrored image of your potential to meet purchaser calls and the overall effectiveness of your eCommerce operations.

The fill rate formula is simple. You divide the range of purchaser orders shipped in full through the number of patron orders positioned. whilst you multiply that number by 100, you'll study your fill price in the form of a percent.

Fill rate refers to the share of consumer calls that is met via on-the-spot inventory availability, without backorders, stockouts, or lost income. without a doubt positioned, it's an indication of how nicely you are able to meet patron calls at any given time.

Learn more about the Fill rate here: brainly.com/question/25793394

#SPJ4

5 0
2 years ago
Assuming that a marketing research study will answer important questions and reduce uncertainty associated with the proposed pro
scoray [572]

Answer:

The correct answer is C. Is top management committed to the study?

Explanation:

Market research is the process that includes the actions of identification, collection, analysis and dissemination of information with the purpose of improving marketing decision making. Its implementation occurs basically for two reasons:

1. to solve problems, for example, determine the potential of a market.

2. to identify problems, for example, to know why a product does not have the expected consumption. In essence, it seeks to meet the customer thus complying with the first premise of marketing.

That is why managers and researchers continually focus on the search for those practices that will allow them to improve the organization and direction of their processes and therefore increase their likelihood of success.

7 0
3 years ago
Other questions:
  • Assume that the rate on a 1-year bond is now 6%, but all investors expect 1-year rates to be 7% one year from now and then to ri
    9·1 answer
  • Proton corp. is an automobile manufacturer known for producing efficient, durable, and low-priced cars. recently, the company la
    10·1 answer
  • For safety reasons, there should be no heating/cooling returns in _______.
    12·1 answer
  • In recent years debit cards have become popular. Debit cards allow the holder of the card to pay a merchant for gods and service
    15·1 answer
  • Designing a car is expensive and time-consuming even with the use of computers because of the difficulty of getting all the vari
    6·1 answer
  • In the state of Florida if you're convicted of reckless driving you'll be assessed how many points
    8·2 answers
  • Finland Inc has the following Accounts Receivable Aging on March 31 Aging BucketCurrent1-90 days91-180 days181-365 days366 days
    11·1 answer
  • The Davises pay the annual property tax of $1,825 on their lake house every January. On a whim, they sell the lake house to the
    9·1 answer
  • A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are independent and Projects 3, 4, and 5 are mutually
    6·1 answer
  • Windsor Company sells one product. Presented below is information for January for Windsor Company.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!