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NEW QUESTION: 1
The "degree of leverage" concept is designed to show how changes in sales will affect EBIT and EPS. If a
10 percent increase in sales causes EPS to increase from $1.00 to $1.50, and if the firm uses no debt, then what is its degree of operating leverage?
A. 4.2
B. 3.6
C. 5.5
D. 4.7
E. 5.0
Answer: E
Explanation:
Explanation/Reference:
Explanation:
These two equations could be used:
DTL = (DOL)(DFL).
EPS(1) = EPS(0)[1 + (DTL)(%Change Sales)].
Note that EPS rises by 50 percent, from $1.00 to $1.50, on a 10 percent increase in sales, so
1.50 = 1.00[1 + (DTL)(0.1)]
1.50 = 1 + 0.1 DTL
0.1 DTL = 0.50
DTL = 5.00.
Now DTL = 5 = (DOL)(DFL)
But if Debt = 0, then DFL = 1, so DOL = DTL = 5.0.

NEW QUESTION: 2
Which of the following BEST measures the impact of business interruptions caused by an IT service outage?
A. Sustained financial loss
B. Average time to recovery
C. Cost of remediation efforts
D. Duration of service outage
Answer: A

NEW QUESTION: 3
What is the default maximum transmission unit on the Cisco router ATM interface?
A. 9288 bytes
B. 1516 bytes
C. 1500 bytes
D. 1492 bytes
E. 4470 bytes
Answer: E
Explanation:
Why are MTUs 4470 Bytes?
Most Cisco ATM router interfaces use a default MTU size of 4470 bytes. This number was
chosen to match exactly Fiber Distributed Data Interface (FDDI) and High-Speed Serial
Interface (HSSI) interfaces for autonomous switching.

NEW QUESTION: 4
Which of the following characterizes block level storage?
A. Best for high performance database applications
B. Main component of the operating system
C. Includes ownership and access permissions
D. Allows the application to use abstract data objects of variable size
Answer: A