#2 Financial leverage is ________________.
A. the extent to which fixed assets and associated fixed costs are used in business
B. the percentage change in operating income that occurs as a result of a percentage change in units sold
C. the amount of debt used in the capital structure of a firm.
D. the impact of change in sales or volume on bottom line earnings per share.
Answer:C
#2 Financial leverage is ________________.
A. the extent to which fixed assets and associated fixed costs are used in business B. the percentage change in operating income that occurs as a result of a percentage change in units sold C. the amount of debt used in the capital structure of a firm. D. the impact of change in sales or volume on bottom line earnings per share.