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Posted by on Friday, November 20, 2009 at 1:12pm.

5) Combined leverage is concerned with the relationship between
A. changes in volume and changes in EPS.
B. changes in EBIT and changes in EPS.
C. changes in volume and changes in EBIT.
D. changes in EBIT and changes in net income.

Answer (D)
6) The degree of financial leverage is concerned with the relation between
A. changes in volume and changes in EBIT.
B. changes in volume and changes in EPS.
C. changes in EBIT and changes in EPS.
D. changes in EBIT and changes in operating income.
Answer is (B)
I want to know is these two are correct

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