The CFO of The Chop Shop has determined that the companys degree of operating leverage (DOL) is
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The CFO of The Chop Shop has determined that the company’s degree of operating leverage (DOL) is 2.5× and that its degree of financial leverage (DFL) is 3.0×. According to this information, how will the firm’s EPS be affected if its amount of EBIT turns out to be 5 percent higher than expected?
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DOL 25 DFL 30 DTL 25 x 30 75 If EBIT is ...View the full answer
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