« previous next »

Author Question: Operating leverage is measured as the responsiveness of the firm's earnings before interest and ... (Read 110 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?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

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.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Marine myths measured Marine myths measured
How to calculate simple interest (Part 2) How to calculate simple interest (Part 2)
How to calculate compound interest (Part 1) How to calculate compound interest (Part 1)
Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ... Nine $10 000, 4% bonds with interest payable semi-annually and redeemable at par are purchased ...
Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ... Rita borrows $4,500 from the bank at 9 percent annually compounded interest to be repaid in ...
Compound interest Compound interest
Video: Summary of glucose catabolism

For a complete list of videos, visit our video library