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2. Degree of Financial Leverage (DFL) The percentage change in EPS that results from a change in EBIT DFL=EBIT/EBITI(interestexpense) The ABC Company has sales of

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2. Degree of Financial Leverage (DFL) The percentage change in EPS that results from a change in EBIT DFL=EBIT/EBITI(interestexpense) The ABC Company has sales of $200,000 and EBIT of $32,000 and a tax rate of 40%. What is the impact of a 1% increase in EBIT on net income (EPS)

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