Login / Signup

Question

If the degree of operating leverage of a firm is given as 2.8 times, it means:

A If there is 2.8% increase in sales, the EBIT will increase by 1%

B If there is 2.8% increase in sales, EPS will increase by 1%

C If there is 1% increase in sales, the EBIT will increase by 2.8%

D If there is 1% increase in sales, EPS will increase by 2.8%

E If there is 1% increase in EBIT, EPS will increase by 2.8%

Practice Next

More Audit Questions

Which of the following accounts for least likely a current asset?
________ has permitted AD Category-I banks to remit advance payment on behalf of Qualified Jewellers for import of gold through India International Bullion...
A 10% 5-year bond with a face value of Rs 1000, has been purchased by Mr. X for Rs.900, What is his Yield to Maturity?
Which of the following scenarios best represents the ‘Paradox of Thrift’ as explained by Keynesian economics?
The cost of an asset on 01-01-2002 is 5,00,000 and its life is 10 years with salvage value is zero. If it is sold on 31-12-2008 for 50,000 than calculate t...
Commission given on each unit of sales will fall under which of the following cost?
A company made credit sales of Rs.72 lakh in the year. If the debtors value at end of the year was Rs.12 lakh, what will be the average age of receivables,...
The price of the contract is Rs 120. The initial margin is 40 % and maintenance margin is 25%. At what price the margin call will be initiated if person ha...
Find the incorrect option regarding the elasticity of commodities?
What is the ethical responsibility of boards regarding stakeholder engagement?

Relevant for Exams:

Hey! Ask a query

ask-question