The value of EBIT at which EPS is equal to zero is known as ____________.
A). Break-even point
B). Financial break-even point
C). Operating break-even point
D). Overall break-even point
__________ is the most important investment decision because it determines the risk-return characteristics of the portfolio.
A). Hedging
B). Market timing
C). Performance measurement
D). Asset allocation
The measure of business risk is __________.
A). operating leverage
B). financial leverage
C). total leverage
D). working capital leverage
Investors can normally afford to assume larger risks in the ____ phase of the life- cycle.
A). accumulation
B). consolidation
C). spending
D). gifting
Degree of total leverage can be applied in measuring change in _________.
A). EBIT to a percentage change in quantity
B). EPS to a percentage change in EBIT
C). EPS to a percentage change in quantity
D). Quantity to a percentage change in EBIT