Across
- 3. Measure of responsiveness of EPS to changes in EBIT
- 5. Cost that varies with output level
- 8. Sensitivity of EBIT to changes in sales due to fixed operating costs
- 9. Cost that does not change with production or sales level
- 11. Use of fixed costs or debt to magnify returns to shareholders
- 12. Strategy of using debt to enhance returns to equity shareholders
- 13. Overall leverage effect measuring sensitivity of EPS to sales changes
- 15. Fixed financial charge paid on borrowed funds
- 17. Level of sales where total revenue equals total cost
- 19. Difference between sales and variable costs per unit
- 20. Ratio used to measure financial leverage in capital structure
- 21. Economists who proposed capital structure irrelevance theory
Down
- 1. Risk arising from the use of debt in financing
- 2. Use of debt financing to increase earnings per share
- 4. Ratio measuring firm ability to meet interest obligations
- 6. Sales minus variable costs used in operating leverage calculations
- 7. Measure of responsiveness of EBIT to changes in sales
- 10. Mix of debt and equity financing used by a firm
- 14. Risk arising from operating uncertainty independent of financing
- 16. Earnings per share affected by financial leverage
- 18. Earnings before interest and taxes