1. Which of the following measures the percentage change in earnings before interest and tax(or operating cash flow) associated with a given percentage change in sales? A) Degree of financial leverage B) Degree of operating leverage C) Degree of total leverage D) Degree of weighted average
2. What does P/E Ratio of a 10 indicate? a. It would take 10 years for an investor to recover his or her initial investment b. The firm will pay a dividend of $10 per share. c. The value of the stock will be 10 times the initial investment at the time of maturity. d. An investor would receive 10 percent of the total earnings of the firm, at the time of liquidation