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    Contemporary Financial Management Study Set 1
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    Exam 14: Capital Structure Management in Practice
  5. Question
    A DFL (Degree of Financial Leverage) of 3
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A DFL (Degree of Financial Leverage) of 3

Question 42

Question 42

Multiple Choice

A DFL (degree of financial leverage) of 3.0 indicates that a 27% increase in EPS is the result of a increase in EBIT.


A) 81%
B) 3%
C) 9%
D) 6%

Correct Answer:

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