Skip to content

If a firm has a DOL of 2.8, it means:

Looking for the answer to the question below related to Financial Management?

If a firm has a DOL of 2.8, it means:

 Options:

A. If sales increase by 2.8%, the EBIT will increase by 1%
B. If EBIT increase by 2.896, the EPS will increase by 1 %
C. If sales rise by 1%, EBIT will rise by 2.8%
D. None of the above

 

The Correct Answer Is:

  • C. If sales rise by 1%, EBIT will rise by 2.8%

 

Conclusion

I hope you got the answer to your question.

Leave a Reply

Your email address will not be published. Required fields are marked *