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
(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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