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Total Leverage Can Be Defined as the Potential Use of Fixed

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Total leverage can be defined as the potential use of fixed costs, both operating and financial, to magnify the effect of changes in sales on a firm's earnings per share.


Definitions:

Descriptive Statistics

Statistical methods that summarize and organize characteristics of data sets, such as mean, median, mode, and range.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean value.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are from the average.

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