2. Estimate Dell's degree of operating leverage (DOL) by calculating the percentage change in operating profits compared

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2. Estimate Dell's degree of operating leverage (DOL) by calculating the percentage change in operating profits compared to the previous year and dividing that by the percentage change in sales. How does that compare to the result you would obtain for operating leverage using the formula DOL = 1 + fixed costs/profits? Why is there a difference when using these two approaches?

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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