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    Contemporary Financial Management Study Set 1
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    Exam 14: Capital Structure Management in Practice
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    Last Year Avator's Operating Income (EBIT) Increased by 22 Percent
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Last Year Avator's Operating Income (EBIT) Increased by 22 Percent

Question 8

Question 8

Multiple Choice

Last year Avator's operating income (EBIT) increased by 22 percent while its dollar sales increased by 15%.What is Avator's degree of operating leverage (DOL) ?


A) 0.68
B) 2.0
C) 1.47
D) 0.32

Correct Answer:

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