When an investor wishes to magnify the impact of change in sales into a relatively larger change in earning per share, it shall use: (A) Operating Leverage only (B) Financial Leverage only (C) Both Operating and Financia
CS Executive · Financial and Strategic Management · PYQS · December 2022
When an investor wishes to magnify the impact of change in sales into a relatively larger change in earning per share, it shall use: (A) Operating Leverage only (B) Financial Leverage only (C) Both Operating and Financial Leverage (D) Leverage won't help
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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