Examlex

Solved

Which of the Following Mathematical Expressions Is Used to Compute

question 23

Multiple Choice

Which of the following mathematical expressions is used to compute the degree of financial leverage (DFL) at a particular level of earnings before interest and taxes (EBIT) ? Assume the firm has no preferred stock. 


Definitions:

Collateral

Assets pledged as security for the repayment of a loan, forfeitable in the event of a default.

Secured Creditor

A creditor with the advantage of a security interest in assets of the debtor, offering protection for the credit extended.

Security Interest

is a legal claim or right granted over assets as collateral to secure the performance of an obligation, usually the repayment of a loan.

Security Interest

A legal claim or lien on property or assets, granted to secure the performance of an obligation or repayment of a debt.

Related Questions