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NEW QUESTION: 1
When an entity increases its degree of financial leverage DFL), the:
A. Equity beta of the entity falls.
B. Standard deviation of returns on the equity of the entity rises.
C. Systematic risk of the entity rises.
D. Systematic risk of the entity falls.
Answer: B
Explanation:
The DFL equals the percentage change in FPS earnings available to ordinary shareholders) divided by the percentage change in net operating profit or loss. When the DFL rises, fixed interest charges and the riskiness of the entity rise. As a result, the variability of returns will increase. In other words, the standard deviation of returns of the entity rises.

NEW QUESTION: 2

A. Option A
B. Option B
C. Option D
D. Option C
Answer: A

NEW QUESTION: 3
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A. Cable certifier
B. Toner probe
C. Snips
D. Butt set
Answer: A
Explanation:
Explanation/Reference:
Explanation:


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