The __________ is the percentage change in earnings per share that results from a percentage change in operating income.

CS Executive · Financial and Strategic Management · PYQS · June 2021
The __________ is the percentage change in earnings per share that results from a percentage change in operating income.
(A) Degree of combined leverage
(B) Degree of financial leverage
(C) Break-even point
(D) Degree of operating leverage

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Capital Structure

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