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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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    If a Firm Sees Its EPS Increase 27% on a 12
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If a Firm Sees Its EPS Increase 27% on a 12

Question 13

Question 13

Multiple Choice

If a firm sees its EPS increase 27% on a 12% increase in sales, what is the firm's DOL.During the same period the firm saw its EBIT increase only 8%.


A) 1.50
B) 3.38
C) 1.34
D) 0.67

Correct Answer:

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