The Degree of Financial Leverage Measures the Sensitivity of Earnings

question 6

True/False

The degree of financial leverage measures the sensitivity of earnings per share to sales.

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Definitions:

Support Products

Support products are ancillary items or services that support or enhance the usability and performance of a primary product or service.

Components

Fundamental parts or elements that make up a whole system, machine, or device, each serving a specific function.

Derived Demand

A demand for a good or service that arises from the demand for another good or service.

Philips

A diversified technology company known for its electronics, healthcare, and lighting products.