« previous next »

Author Question: Operating leverage is measured as the responsiveness of the firm's earnings before interest and ... (Read 92 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?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Closed urinary drainage system. Urine being measured after it leaves patient’s body via catheter. Closed urinary drainage system. Urine being measured after it leaves patient’s body via catheter.
The declining age of menarche over the past 150 years has been measured in many European countries, The declining age of menarche over the past 150 years has been measured in many European countries,
How to solve a linear algebraic bank interest problem with two unknowns How to solve a linear algebraic bank interest problem with two unknowns
How to create a table of values displaying commission and earnings (Question 2) How to create a table of values displaying commission and earnings (Question 2)
Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to ... Nick buys a $25 000, 5.4% bond with quarterly interest coupons, 3 years before maturity, to ...
Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ... Last year, Terrific Copying had total revenue of $475 000, while operating at 60% of capacity. ...
Video: Nucleic acid digestion -small intestine

For a complete list of videos, visit our video library