The Degree of Combined Leverage Is Equal to the Degree

question 32

Multiple Choice

The degree of combined leverage is equal to the degree of operating leverage ____ the degree of financial leverage.

• A) added to
• B) divided by
• C) multiplied by
• D) subtracted from

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Definitions:

Spreadsheet

A spreadsheet is a digital tool for organizing, analyzing, and storing data in tabular form, frequently used for financial planning, calculations, and record keeping.

Cash Flows

The aggregate value of cash entering and exiting a company, particularly influencing its liquid assets.

Statement Of Cash Flows

A financial statement that summarizes the cash inflows and outflows for a company, showing how its cash levels change over time.

Cash Inflows

The total amount of money being transferred into a business, typically from operations, investments, and financing activities.