Examlex

Solved

Total Leverage Can Be Defined as the Potential Use of Fixed

question 207

True/False

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 the firm's earnings per share.


Definitions:

Shareholder

An individual or institution that owns one or more shares of stock in a public company.

Proxy Materials

Documents distributed to shareholders in preparation for corporate votes, including information on issues to be voted on at shareholder meetings.

Corporate Articles

Also known as Articles of Incorporation, these are formal documents filed with a government body to legally document the creation of a corporation.

Bylaws

Written rules and regulations that govern the internal management of an organization, corporation, or entity.

Related Questions