Which of the Following Mathematical Expressions Is Used to Compute

question 65

Multiple Choice

Which of the following mathematical expressions is used to compute the degree of financial leverage at a particular level of earnings before interest and tax (EBIT) ? Assume that the preferred stockholders receive no dividends.

• A) Earnings before interest and tax ÷ Earnings per share (EPS)
• B) Gross profit ÷ Earnings before interest and tax
• C) Sales ÷ (Earnings before interest and tax - Interest)
• D) Earnings before interest and tax ÷ (Earnings before interest and tax - Interest)
• E) (Earnings before interest and tax - Interest - Taxes) ÷ Number of shares

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The actions, reactions, or conduct of an individual, group, or system, often analyzed in psychological or sociological contexts.

Cooperation

The action or process of working together to the same end, often by sharing knowledge or tasks.

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Persuading an individual to adopt a belief or take an action based on logical argumentation or discourse.

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Pertaining to the art of effective or persuasive speaking or writing, especially the use of figures of speech and other compositional techniques.