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The degree of financial leverage may be defined as:

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The degree of financial leverage may be defined as:

 Options:

A. percent change in sales/percent change in volume
B. percent change in EPS/percent change in net income
C. percent change in EPS/percent change in EBIT
D. percent change in EPS/percent change in sales

 

The Correct Answer Is:

  • C. percent change in EPS/percent change in EBIT

 

Conclusion

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