Calculating Operating Leverage

question 51

Multiple Choice

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

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

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Presidential Discretion

The authority and freedom of action granted to the President in areas not explicitly defined by the constitution or statutes, often in the context of national security or foreign policy.

Transfer Payments

Payments made by the government to individuals through various social benefit programs, without any goods or services being received in return.

Social Security Benefits

Government programs designed to provide financial support to individuals during retirement, disability, or upon death, ensuring income for beneficiaries.

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Occurs when a government's expenditures exceed its revenues during a specific period of time, leading to borrowing or debt accumulation.