Question: (TRUE or FALSE?) As long as sales are decreasing, a high DOL is desirable, but if sales begin to increase, a high DOL will result

(TRUE or FALSE?) As long as sales are decreasing, a high

(TRUE or FALSE?) As long as sales are decreasing, a high DOL is desirable, but if sales begin to increase, a high DOL will result in EBIT declining at an even faster pace than sales. True False Question 9 (TRUE or FALSE?) The degree of operating leverage (DOL) is equal to Percent Change in EBIT/Percent Change in Sales. True False Question 10 (TRUE or FALSE?) The degree of financial leverage (DFL) equation is: DFL = The percentage changes in EPS The percentage changes in EBIT. True False

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