Which of the Following Mathematical Expressions Is Used to Calculate

question 65

Multiple Choice

Which of the following mathematical expressions is used to calculate the degree of pretax cash flow operating leverage?

• A) 1 + (FC / EBITDA)
• B) 1 + (FC / EBIT)
• C) 1 + [(FC + Depreciation and Amortization) / EBITDA]
• D) 1 + [(FC + Depreciation and Amortization) / EBIT]

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Definitions:

Sieve Element

A type of cell found within the phloem of vascular plants, responsible for transporting sugars and other nutrients throughout the plant.

Companion Cell

In phloem, cell that provides metabolic support to its partnered sieve element.

Source Region

An area where specific air masses form, characterized by its uniform temperature and humidity patterns influencing weather and climate.

Sugars

Simple carbohydrates that are used as a primary energy source for living organisms.