A 10% increase in sales causes EPS to rise from $0.50 to $0.56. Assumi
A 10% increase in sales causes EPS to rise from $0.50 to $0.56. Assuming the firm has no debt, what is its degree of operating leverage (DOL)?
A) 1.00
B) 1.20
C) 0.83
D) 1.50
E) 0.75
ANSWER
B
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