Choose the Word or Phrase in [ ] Which Will

question 65

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-[Market | Business] risk results from the behavior of investors that may cause security prices to fluctuate.

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Definitions:

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income.

EPS

Earnings Per Share; a company's profit divided by the outstanding shares of its common stock, indicating company profitability on a per-share basis.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profitability that excludes interest and income tax expenses.

EBIT

A profitability metric that calculates a company's profits excluding interest and income tax expenses.