Question: Attempts Keep the Highest / 2 4. Analyzing riskiness using a firm's degree of leverage Select the degree of leverage that completes the following sentence.

Attempts Keep the Highest / 2 4. Analyzing riskiness using a

Attempts Keep the Highest / 2 4. Analyzing riskiness using a firm's degree of leverage Select the degree of leverage that completes the following sentence. The is the percentage change in earnings before interest and taxes (EBIT) that results from a given percentage change in sales. Expert Analysts Resources (EAR) has provided you with the following information about three companies you are currently evaluating: Praxis Corp. Western Gas Co. Kumatsu Motors Co. 3.0 3.0 5.0 Degree of Operating Leverage (DOL) Degree of Financial Leverage (DFL) 3.0 2.7 2.1 According to this information, which company would be considered the riskiest? Kumatsu Motors Co. Western Gas Co. Praxis Corp

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