Question
Which of the following is true of the degree of total leverage (DTL)? a. It is the level of EBIT at which EPS equals zero.
Which of the following is true of the degree of total leverage (DTL)?
| a. | It is the level of EBIT at which EPS equals zero. | |
| b. | It is the percentage change in EPS that results from a given percentage change in EBIT. | |
| c. | It is the percentage change in EPS that results from a 1 percent change in sales. | |
| d. | It represents the level of production and sales at which net operating income is zero. | |
| e. | It is the percentage change in NOI (or EBIT) associated with a given percentage change in sales. |
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Introduction To Corporate Finance
Authors: William L. Megginson, M.D. Lucey Brian C., Scott J. Smart, Scott B. Smart, Bill Megginson
1st Edition
184480562X, 9781844805624
