Multiple Choice
The "degree of leverage" concept is designed to show how changes in sales will affect EBIT and EPS.If a 20.00% 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) 2.1250
B) 2.8500
C) 2.4750
D) 2.5000
E) 2.0000
Correct Answer:
Verified
Correct Answer:
Verified
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