Business, 06.05.2020 04:33 alexandriasmith727

The is the percentage change in EPS that results from a given percentage change in sales, and it equals the product of the degrees of operating and financial leverage.

Expert Analysts Resources (EAR) has provided you with the following information about three companies you are currently evaluating:

Galaxy Corp. Three Waters Co. General Products Co.
Degree of Operating Leverage 2.0 3.0 4.0
Degree of Financial Leverage 4.5 2.7 2.6

According to this information, which company would be considered the riskiest?

Answers: 3

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