Everything else equal,the higher the DFL is for a firm,the closer its operations are to its operating breakeven point.

Name: Everything else equal,the higher the DFL is for a firm,the closer its operations are to its operating breakeven point.
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Question

Quizplus · Accepted Answer

DFL (Degree of Financial Leverage) measures the sensitivity of a firm's earnings per share to fluctuations in its operating income, indicating the impact of financial leverage, not how close a firm is to its operating breakeven point.

Everything Else Equal,the Higher the DFL Is for a Firm,the