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    Practical Financial Management Study Set 1
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    Exam 14: Capital Structure and Leverage
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    A Firm Which Has a 2
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A Firm Which Has a 2

Question 43

Question 43

Multiple Choice

A firm which has a 2.5 DOL (degree of operating leverage) would find that an 8% increase in EBIT would result from a(n) ____ increase in sales.


A) 3.2%
B) 5.4%
C) 20.0%
D) 2.0%

Correct Answer:

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