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NEW QUESTION: 1
If a firm uses debt financing (Debt ratio = 0.40) and sales change from the current level, which of the following statements is most correct?
A. The percentage change in net income relative to the percentage change in sales (and in EBIT) will not depend on the interest rate paid on the debt.
B. The percentage change in EBIT will equal the percentage change in net income.
C. Since debt is used, the degree of operating leverage must be greater than 1.
D. The percentage change in net operating income (EBIT) resulting from the change in sales will exceed the percentage change in net income (NI).
E. The percentage change in net operating income will be less than the percentage change in net income.
Answer: E
Explanation:
Explanation/Reference:
Explanation:
The greater the use of fixed assets, the more sensitive EBIT will be to changes in sales. Interest charges on debt are included in net income and not operating income, as the use of debt financing will have an impact on net income when sales change.
NEW QUESTION: 2
HOTSPOT
In the screenshot, click the icon of the preference pane where you configure your Mac so that Windows users can access files on yourMac over the network.
Answer:
Explanation:
NEW QUESTION: 3
Assuming the user has the right privileges, which two combinations will change the schema when using Choice list for adding or modifying a field's content? (Choose two.)
A. Dynamic list with Recalculate Choice list
B. Dynamic list with Limit to list
C. Constant list with Limit to list
D. Constant list with Recalculate Choice list
Answer: C,D
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