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    Fundamentals of Corporate Finance Study Set 22
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    Exam 11: Project Analysis and Evaluation
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    A fiRm Has a DOL = 2
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A fiRm Has a DOL = 2

Question 88

Question 88

Multiple Choice

A firm has a DOL = 2.5. If sales decrease by 20%, then OCF will ____________.


A) decrease by 20%
B) increase by 5%
C) increase by 20%
D) decrease by 12.5%
E) decrease by 50%

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