Which of the following statements is TRUE ?

CS Executive · Financial and Strategic Management · PYQS · June 2023
Which of the following statements is TRUE ?
(A) If Fixed cost rises, DOL and EPS rises
(B) If Sales rises, DOL increases and EPS reduces
(C) If EBIT increases, DFL increases and EPS reduces
(D) Higher the DFL higher the financial risk and vice versa

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic