The degree of financial leverage is concerned with the relationship between
A. changes in volume and changes in EPS
B. changes in volume and changes in EBIT
C. changes in EBIT and changes in EPS
D. changes in EBIT and changes in operating income.
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"Operating leverage" is the use of fixed costs to magnify returns at high levels of operation.
A. 对
B. 错
Financial leverage emphasizes the impact of using debt in the business.
A. 对
B. 错
Operating leverage determines how income from operations is to be divided between debt holders and stockholders.
A. 对
B. 错
Contribution margin is equal to fixed costs minus variable costs.
A. 对
B. 错