". VdoTips: Financial Management Practice Set

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Financial Management Practice Set

86. Degree of total leverage can be applied in measuring change in
(A) EBIT to a percentage change in quantity.
(B) EPS to a percentage change in EBIT.
(C) EPS to a percentage change in quantity.
(D) Quantity to a percentage change in EBIT.
87. The measure of business risk is
(A) operating leverage.
(B) financial leverage.
(C) total leverage.
(D) working capital leverage.
88. The value of EBIT at which EPS is equal to zero is known as
(A) Break even point.
(B) Financial break even point.
(C) Operating break even point.
(D) Overall break even point.
89. Degree of financial leverage is a measure of relationship between
(A) EPS and EBIT.
(B) EBIT and quantity produce
(D)
(C) EPS and quantity produce
(D)
(D) EPS and sales.
90. Operating leverage examines
(A) The effect of the change in the quantity on EBIT.
(B) The effect of the change in EBIT on the EPS of the company.
(C) The effect of the change in output to the EPS of the company.
(D) The effect of change in EPS on the output of the company.