8. Analyzing riskiness using a firm's degree of leverage Select the degree of leverage that completes the following sentence. is the percentage change in EPS that results from a given percentage change in sales, and it equals the product of the degrees of operating and financial leverage. Expert Analysts Resources (EAR) has provided you with the following information about three companies you are currently evaluating: Praxis Corp. Three Waters Co. General Products Co. Degree of Operating Leverage (DOL) Degree of Financial Leverage (DFL) According to this information, which company would be considered the riskiest? General Products Co. Three Waters Co. Praxis Corp Grade It Now Save & Continue No additional external financing will be required. The assigned depreciation method has changed. Additional external financing will be required by Purple Chicken Builders Which of the following could be a direct cause of financing feedback? Check all that apply. Borrowing from the bank Repaying outstanding bonds Repaying notes payable Issuing additional common stock What is one of the potential consequences of financing feedback that might cause the actual financing needs to be higher than initially thought? Financing feedback might: Increase charges against net income, reducing the amount of available internally generated funds Reduce the level of cash on hand Spontaneously increase liabilities associated with the cost of goods sold Increase the length of the operating cycle