A DFL (degree of financial leverage) of 3.0 indicates that a 27% increase in EPS is the result of a(n) ____ increase in EBIT.
A) 81%
B) 3%
C) 9%
D) 6%
Correct Answer:
Verified
Q2: Financial leverage may benefit shareholders when the:
A)return
Q3: Which of the following is most correct?
A)When
Q4: Which of the following is correct?
A)The variation
Q5: The use of fixed-cost financing is referred
Q6: The degree of financial leverage is measured
Q8: If a firm's EBIT changes by 20%
Q9: Granting a tax deduction for corporate interest
Q10: The increased variability in earnings per share
Q11: Financial leverage is a direct function of
Q12: A firm that employs a relatively large
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