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Eduncle Asked an Mcq
March 3, 2020 9:41 am
  • UGC NET
  • Management

The combined leverage

(a)    is the summation of the degree of operating leverage and the financial leverage
(b)    measures total risk of the firm
(c)    is the difference between the degree of operating leverage and financial leverage
(d)    indicates the effect that change in sales will have on earning per share
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  • Eduncle Best Answer

    Combined Leverage (CL) demonstrate the combined effect of operating leverage and financial leverage. Financial manager calculates combined leverage (CL) to measure overall risk ...

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