Multiple Choice
The "degree of leverage" concept is designed to show how changes in sales will affect EBIT and EPS.If a 10% increase in sales causes EPS to increase from $1.00 to $1.50,and if the firm uses no debt,then what is its degree of operating leverage?
A) 4.2869
B) 4.5125
C) 4.7500
D) 5.0000
E) 5.2500
Correct Answer:
Verified
Correct Answer:
Verified
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