The Degree of Pretax Cash Flow Operating Leverage Provides Us

question 43

Multiple Choice

The degree of pretax cash flow operating leverage provides us with

• A) a measure of how sensitive pretax operating cash flows are to changes in revenue.
• B) a measure of how sensitive accounting operating profits are to changes in revenue.
• C) a measure of how sensitive NOPAT is to changes in revenue.
• D) none of the above.

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