General Studies · Leverage Analysis
Match List I (Concept) with List II (Meaning) and select the correct answer: List I (Concept) A. Operating Leverage B. Financial Leverage C. Combined Leverage D. Degree of Operating Leverage (DOL) List II (Meaning) 1. Sensitivity of EPS to change in EBIT 2. Sensitivity of EBIT to change in Sales 3. Combined effect of operating and financial leverage 4. Measures business risk due to fixed operating costs
- 1A-3, B-1, C-2, D-4
- 2A-2, B-1, C-3, D-4✓
- 3A-1, B-2, C-4, D-3
- 4A-2, B-3, C-1, D-4
Correct answer
A-2, B-1, C-3, D-4
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