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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