Examlex
Identify the following terms.
-Balfour Declaration
Financial Leverage
Utilizing borrowed money to amplify the potential gains from an investment, but also elevating the risk of incurring losses.
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.