The financial leverage can be arrived by using the formula:

CS Executive · Financial and Strategic Management · PYQS · December 2021
The financial leverage can be arrived by using the formula:
(A) Operating Profit/Profit After Tax
(B) Profit After Tax/EBIT
(C) EBIT/EPS
(D) EBIT (Operating Profit)/Profit Before Tax

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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