A High Degree of Financial Leverage Means That a Small

question 22

Multiple Choice

A high degree of financial leverage means that a small change in sales will result in:

• A)a small change in earnings per share
• B)a large change in earnings per share
• C)no change in earnings per share
• D)none of the above

---

Definitions:

Formula Location

The specific cell or range of cells in a spreadsheet where a mathematical calculation is performed.

Sequential Values

A series of numbers or items arranged in a specific, consecutive order.

Named Range

A feature in spreadsheet software that allows a user to assign a descriptive name to a cell or range of cells for easy reference.

Predefined Procedure

A set of pre-established instructions or rules within a program or system meant to carry out specific tasks.