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Question 114 - CTFA discussion

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A firm's degree of operating leverage (DOL) depends primarily upon its:

A.
Sales variability
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A.
Sales variability
B.
Level of fixed operating costs
Answers
B.
Level of fixed operating costs
C.
Closeness to its operating break-even point
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C.
Closeness to its operating break-even point
D.
Debt-to-equity ratio
Answers
D.
Debt-to-equity ratio
Suggested answer: C
asked 16/09/2024
Emanuel Sifuentes
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