Examlex
Choose the one alternative that best completes the statement or answers the question.
-What area does the integral represent?
Degree Of Operating Leverage (DOL)
A measure that assesses the sensitivity of a company's operating income to its sales, indicating the percentage change in operating income for a percentage change in sales.
Degree Of Financial Leverage (DFL)
A ratio indicating how much a company's earnings before interest and taxes (EBIT) can be affected by a change in its capital structure.
EPS
Earnings Per Share – a company's profit divided by the outstanding shares of its common stock, providing an indicator of the company's profitability.
Degree Of Total Leverage
A ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income due to changes in its capital structure.
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