What Would Be the Degree of Financial Leverage for Under

question 50

Multiple Choice

What would be the degree of financial leverage for Under A Cloud Skydiving School if the company will have earnings before interest and taxes of $750,000, which would be a 15% increase? The firm had EPS of $1.25 but, with the increased earnings, anticipates paying $1.37.

• A) 0.80
• B) 1.08
• C) 2.01
• D) 1.25

---

Definitions:

Individual Differences

The variations or deviations among individuals in regard to a common characteristic or trait, indicating uniqueness or diversity in a population.

Job Applicants

Individuals who apply for a specific job position, expressing interest in employment with a company or organization.

Loyalty Programs

Marketing initiatives designed to reward and thereby retain customers by offering benefits (such as points, discounts, or rewards) for frequent purchases or engagement.

Reward Programs

Loyalty schemes designed by businesses to incentivize and retain customers by offering them benefits for repeated purchases or engagements.