Financial Leverage Is a Direct Function of the Ratio Of

question 103

Multiple Choice

Financial leverage is a direct function of the ratio of:

• A)net income to sales.
• B)EBIT to sales.
• C)interest expense to EBIT.
• D)net income to the number of shares of common stock.

---

Definitions:

Cross-Examine

The questioning of a witness by the party opposing the one who initially called the witness to testify, aiming to challenge their testimony or credibility.

Natural Justice

The legal principles ensuring fairness in the decision-making processes, including the right to a fair hearing and the rule against bias.

Lawyer

A professional who is qualified to offer advice about the law or represent someone in legal matters.

Heavy Multi-Axle Truck

A heavy multi-axle truck is a large vehicle designed for transporting goods, characterized by having multiple sets of wheels or axles to support its substantial weight and cargo load.