Question: Financial Leverage in theory is concerned with the relationship between changes in EPS divided by changes in EBIT Changes in EPS divided by changes in

Financial Leverage in theory is concerned with the relationship between changes in EPS divided by changes in EBIT Changes in EPS divided by changes in unit volume Changes in EBIT divided by changes in unit volume Changes in EBIT and and changes in operating income The Degree of Operating Leverage as theory is computed as percent change in operating income divided by percent change in unit volume Percent change in Operating profit devided by percent change in net income percent change in EPS divided by percent change in operating income percent change in volume divided by percent change in operating profit

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