Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
Explanation:
Given that,
Change in sales = 3%
Change in earnings = 9%
We need to find a company's total leverage.
Total leverage is equal to the ratio of percentage change in earnings per share to percentage change in sales revenue.
[tex]\text{leverage }=\dfrac{9\%}{3\%}\\=3[/tex]
Hence, company's total leverage is 3 units.
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.
