What Does a Degree of Financial Leverage (DFL) of 2

Multiple Choice

What does a degree of financial leverage (DFL) of 2.0 indicate?

A) For every 1 percent change in its sales, the firm's EBIT will change by 2 percent.
B) For every 1 percent change in its EPS, the firm's sales will change by 0.5 percent.
C) For every 1 percent change in its EBIT, the firm's EPS will change by 2 percent.
D) For every 1 percent change in its EPS, the firm's EBIT will change by 0.5 percent.
E) For every 1 percent change in its EBIT, the firm's sales will change by 2 percent.