If a company acquired a helicopter for its top management for a certain period on a fixed payment, which of the following will be true regarding leverage ?

CS Executive · Financial and Strategic Management · PYQS · December 2019
If a company acquired a helicopter for its top management for a certain period on a fixed payment, which of the following will be true regarding leverage ?
(A) DOL will increase
(B) DFL will increase
(C) DOL will decrease
(D) DCL will remain unchanged

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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