Financial and Operating Leverage Quiz
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Questions and Answers

What is the value of Operating Leverage for Gokaldas Exports Ltd.?

  • 1.4
  • 1.5 (correct)
  • 1.2
  • 1.6

    • What is the value of Financial Leverage for Gokaldas Exports Ltd.?

  • 1.3
  • 1.2
  • 1.8
  • 1.5 (correct)

    • What does a high operating leverage indicate for Gokaldas Exports Ltd.?

  • The company's operating income is sensitive to changes in sales (correct)
  • The company's operating income is not sensitive to changes in sales
  • Both A & B
  • None of the Above

    • What is the value of Combined Leverage for Gokaldas Exports Ltd.?

    <p>2.25</p> Signup and view all the answers

    What is the value of Financial Leverage for Gokaldas Exports Ltd.?

    <p>1.5</p> Signup and view all the answers

    What is the value of Operating Leverage for Gokaldas Exports Ltd.?

    <p>1.6</p> Signup and view all the answers

    What is the value of Combined Leverage for Gokaldas Exports Ltd.?

    <p>2.08</p> Signup and view all the answers

    A low financial leverage indicates that the company

    <p>The company has low debt level</p> Signup and view all the answers

    A high operating leverage indicates

    <p>The company's operating income is sensitive to changes in sales</p> Signup and view all the answers

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