If I believe in the basic principle of a risk-reward relationship, my conclusion regarding security ratings and yields between an Aaa bond and a Baa bond would be that:
A firm's degree of operating leverage (DOL) depends primarily upon its
An EBIT-EPS indifference analysis chart is used for___________
EBIT is usually the same thing as:
In the context of operating leverage break-even analysis, if selling price per unit rises and all other variables remain constant, the operating break-even point in units will:
If a firm has a DOL of 5 at Q units, this tell us that:
This statistic can be used as a quantitative measure of relative "financial risk."A. coefficient of variation of earnings per share (CVEPS)B. coefficient of variation of operating income (CVEBIT)C. (CVEPS - CVEBIT)D. (CVEPS + CVEBIT)
A firm's degree of total leverage (DTL) is equal to its degree of operating leverage________its degree of financial leverage (DFL).
The further a firm operates above its operating break-even point, the closer its degree of operating leverage (DOL) measure approaches________