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.
