The Operating Leverage Factor Indicates the Percentage Change in Operating

question 111

True/False

The operating leverage factor indicates the percentage change in operating income that will occur from a 5% change in volume.

---

Definitions:

Book Value

The net value of a company's assets minus its liabilities, representing the equity value of a company on its balance sheet.

Reverse Stock Split

A corporate action in which a company reduces the number of its existing shares to increase the share price without changing the total market capitalization.

Market Value

The current trading price for a service or asset in the open market.

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet, often compared to its market value to assess if it's under or overvalued.