A 20% increase in sales causes EPS to rise from $4.00 to $6.50. Assumi
A 20% increase in sales causes EPS to rise from $4.00 to $6.50. Assuming the firm has no debt, what is its degree of operating leverage (DOL)?
A) 1.00
B) 1.50
C) 1.57
D) 3.13
E) 2.25
ANSWER
D
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