« previous next »

Author Question: Operating leverage is measured as the responsiveness of the firm's earnings before interest and ... (Read 103 times)

stevenposner

  • Hero Member
  • *****
  • Posts: 608
on: Jul 10, 2018
Operating leverage is measured as the responsiveness of the firm's earnings before interest and
  taxes relative to fluctuations in sales.
 
  Indicate whether the statement is true or false

Question 2

Using the percent of sales method and assuming that no excess capacity exists, a 20 increase in
  sales will result in
 
  A) a 20 increase in total liabilities.
  B) a 20 increase in total assets.
  C) a 20 increase in the company's profit margin.
  D) a 20 increase in retained earnings.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
Buy Test-Bank


karmakat49

  • Sr. Member
  • ****
  • Posts: 369
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d
Testing an oxygen sensor using a DMM set on DC volts. With the engine operating in closed loop, ... Testing an oxygen sensor using a DMM set on DC volts. With the engine operating in closed loop, ...
Growing Interest in Sugar-Free Foods and Beverages Growing Interest in Sugar-Free Foods and Beverages
Lever Systems and Leverage Lever Systems and Leverage
What principal will earn $77.14 interest at 6.65% p. What principal will earn $77.14 interest at 6.65% p.
Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ... Find the proceeds of the following promissory note. A five-year, $4500.00 note bearing interest ...
Video: Types of disease resistance: innate defenses & immunity

For a complete list of videos, visit our video library