LEVERAGE Quiz

What is the Degree of Operating Leverage for Firm A?

• 0.93

• 1.23

• 0.12

• 1.33

What is the degree of combined leverage?

• The percentage change in sales divided by the percentage change in earnings per share

• The percentage change in earnings per share divided by the percentage change in sales

• The degree of operating leverage divided by the degree of financial leverage

• The percentage change in earnings before interest and taxes divided by the percentages change in sales

Calculate the Degree of Financial Leverage for the following firm.

• 2.50

• 2.45

• 2.67

• 2.31

Calculate the value of Degree in Operating Leverage (DOL)

• 2.88 times

• 2.18 times

• 1.18 times

• 0.18 times

Calculate Degree of Combined Leverage from the given data.

• 7.35

• 1.22

• 6

• 5.22

Calculate the Degree of Operational Leverage for the following firm.

• 5.00

• 4.78

• 5.78

• 4.00

Calculate the value of Degree in Operating Leverage for Company A and Company B

• Company A 2.67 times Company B 2.00 times

• Company A 2.27 times Company B 2.33 times

• Company A 2.77 times Company B 2.00 times

• Company A 2.87 times Company B 2.33 times