Calculating Operating Leverage

question 22

Multiple Choice

Calculating operating leverage. Potter Company has a degree of cash flow operating leverage equal to 1.266. If the company's EBITDA was $1,500 last year while its depreciation and amortisation expense was $100 in the same year, then what was the company's degree of accounting operating leverage?

• A) 1.29
• B) 1.33
• C) 1.36
• D) 1.39

Discern the differences in family life, material culture, and economic practices between Chesapeake and New England families in the seventeenth century.

Understand key aspects of Puritan governance, including the role of the covenanted community and limitations on political participation.

Explore the theory and practice of Puritan and Congregationalist settlers with regards to establishing a colony, including their interactions with Native Americans.

Examine the influence of religious dissent within Puritan communities, especially the cases of Roger Williams and Anne Hutchinson.

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Definitions:

Semi-strong Form

A form of the Efficient Market Hypothesis that asserts all public information is reflected in the stock prices.

Market Efficiency

Market efficiency is a concept where all available information is already reflected in asset prices, implying that assets are priced perfectly and it is impossible to "beat the market" through expert stock selection or market timing.

Microsoft Stock

The shares of Microsoft Corporation, representing ownership in the company, traded on the stock market.

Strong Form

A hypothesis suggesting that market prices fully reflect all information, both public and private, implying no one can consistently achieve higher returns.