Examlex
Which of the following is a correct statement?
DFL
Degree of Financial Leverage; a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its capital structure.
EBIT
EBIT stands for Earnings Before Interest and Taxes, a measure of a firm’s profitability that excludes interest and income tax expenses.
EPS
Earnings Per Share, a company's profit divided by the number of its common shares outstanding, indicating the company's profitability.
EBIT-EPS Line
A graphical representation showing the impact of financial leverage on a company's earnings per share at various levels of earnings before interest and taxes.
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