1 if a firm has a degree of operating leverage dol that is, Ask an Expert

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1. If a firm has a degree of operating leverage (DOL) that is greater than 1.0, then it means that a 1.0 percent change in _____ will cause a change in earnings before interest and taxes (EBIT) that is _____ 1.0 percent.?

a. ?earnings per share; greater than

b. ?fixed costs; less than

c. ?net income; greater than

d. ?sales; greater than

e. ?net operating income; less than

2. Which of the following accounts does not necessarily change when sales increase?”

a. Notes payable

b. Accrued taxes

c. Accounts receivable

d. Accounts payable

e. Accrued wages

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92744043

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