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  • 1.  CMA Pop Quiz - Q202

    Posted 10-20-2017 01:57 PM
    A financial analyst with Mineral Inc. calculated the company's degree of financial leverage as 1.5. If net income before interest increases by 5%, earnings to shareholders will increase by

    a. 1.50%
    b. 3.33%
    c. 5.00%
    d. 7.50%

    CMA Exam Part 2


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    Morgan Del Rio
    Marketing and Social Media Manager
    IMA
    morgan.delrio@...
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  • 2.  RE: CMA Pop Quiz - Q202

    Posted 10-24-2017 07:40 AM
    the answer is d. 7.50 (1.5x5%)
    DFL measures how an increase in EBIT will affect earnings to shareholders.therefor a 5% increase in EBIT will cause a 7.5 %increase in earnings to shareholders.

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    Sahna Salimu

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    Original Message