True of the degree of total leverage

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Reference no: EM131905369

Which of the following is true of the degree of total leverage (DTL)??

a. ?It is the level of EBIT at which EPS equals zero.

b. ?It is the percentage change in EPS that results from a given percentage change in EBIT.

c. ?It is the percentage change in EPS that results from a 1 percent change in sales.

d. ?It represents the level of production and sales at which net operating income is zero.

e. ?It is the percentage change in NOI (or EBIT) associated with a given percentage change in sales.

2. Projected statements must be analyzed to determine if they meet the targets by _____.?

a. ?calculating lumpy assets

b. ?preparing budgetary notes

c. ?determining economies of scale

d. ?preparing financial ratios

e. ?preparing the statement of cash flows

Reference no: EM131905369

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