The Degree of Pretax Cash Flow Operating Leverage Provides Us

question 21

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 tax rates.
• D) a measure of how sensitive accounting operating profits are to changes in tax rates.

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