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Expert Analysts Resources (EAR) Has Provided You with the Following

question 47

Multiple Choice

Expert Analysts Resources (EAR) has provided you with the following information about three companies you are currently evaluating:
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C  Company  Degree of Operating Leverage (DOL)   Degree of Financial Leverage (DFL)   Acme 1.5×6.0× Apex 3.0×4.0× Alps 5.0×2.0×\begin{array} { l c c } \text { Company } & \text { Degree of Operating Leverage (DOL) } & \text { Degree of Financial Leverage (DFL) } \\\hline\text { Acme } & 1.5 \times & 6.0 \times \\\text { Apex } & 3.0 \times & 4.0 \times \\\text { Alps } & 5.0 \times & 2.0 \times\end{array}
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Based on this information, which firm is regarded as having the greatest overall risk?


Definitions:

Immunity

The ability of an organism to resist harmful microorganisms from entering it, or the protection granted by law to certain officials or entities from legal action or prosecution.

Public Services

Services provided by the government to its citizens, often free of charge or at a subsidized rate, including education, healthcare, transportation, and law enforcement.

Purchasing Power

The ability of a consumer or a group of consumers to buy goods and services with their income at given prices.

Customized Products

Goods that are tailored or modified to meet the specific wants or needs of individual customers or clients.

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