Multiply. -80 ·(-1.8)·8 ·(-0.08)

question 30

Multiple Choice

Multiply.
-80 ·(-1.8) ·8 ·(-0.08)

• A)-921.6
• B)92.16
• C)-92.16
• D)921.6

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Definitions:

DFL

Degree of Financial Leverage; a measure that evaluates the sensitivity of a company's earnings per share to fluctuations in its operating income, highlighting the impact of financial leverage.

DOL

Degree of Operating Leverage, a measure of a company's operating risk by quantifying how a change in sales affects its operating income.

Earnings Per Share (EPS)

Earnings Per Share (EPS) is a financial metric that divides a company's profit attributable to each outstanding share of common stock, indicating the company's profitability.

Business Risk

The exposure a company or investor has to factors that can lower its profits or lead to its failure.