The CFO determined that the firms degree of operating leverage (DOL) is 3 at sales equal to

Question:

The CFO determined that the firm’s degree of operating leverage (DOL) is 3× at sales equal to $900,000. She also determined that, if sales are actually $945,000, EPS will be $2.60 rather than the forecasted value of $2.00. What is the firm’s degree of financial leverage (DFL)?

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