Finance - Ratios Questions with solutions MCQs

1. What does financial leverage measure?

A

No change with EBIT and EPS

B

The sensitivity of EBIT with % change with respect to output

C

The sensitivity of EPS wrt % change in the EBIT level

D

% variation in the level of production

Finance - Ratios Account Ast. 2024
Correct Answer : C
Explanation :

Financial leverage measures the sensitivity of EPS to changes in EBIT.

Correct Answered :

Wrong Answered :

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