If EBIT Increases 15%,EPS Increases by 30%,debt Increases by 45%,and

question 21

Multiple Choice

If EBIT increases 15%,EPS increases by 30%,debt increases by 45%,and the tax rate declines by 5%,what is the degree of financial leverage?

• A) 2
• B) 1
• C) 9
• D) 3
• E) 6

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Definitions:

Cluster A

Refers to one of three clusters of personality disorders in the DSM, characterized by odd or eccentric behaviors, including paranoid, schizoid, and schizotypal personality disorders.

"Old Guard" Clinicians

Refers to experienced clinicians or mental health professionals who adhere to traditional methods and theories in their practice.

Scientifically Oriented Psychologists

Psychologists who apply scientific methods to understand, explain, and predict human behavior and mental processes.

Common Vocabulary

The set of words that are familiar and regularly used by a particular group of people, facilitating communication and understanding.