48. Financial leverage deals with: A. the relationship of fixed and variable costs. B. the relationship of debt and equity in the capital structure. C. the entire income statement. D. the entire balance sheet.

49. If EBIT equals $160,000 and interest equals $30,000, what is the degree of financial leverage? A. 5.33x B. 1.23x C. .8125x D. 4.33x

50. If a firm has the lowest possible degree of operating leverage and the lowest possible degree of financial leverage, then A. DOL equals 1, and DFL equals 0. B. DOL equals 0, and DFL equals 1. C. DOL equals 1, and DFL equals 1. D. none of these