Question
51.) Troy Co.'s sales increase by 15%. If Troy Co. has a degree of operating leverage (DOL) of 3.0, what is the expected change in
51.) Troy Co.'s sales increase by 15%. If Troy Co. has a degree of operating leverage (DOL) of 3.0, what is the expected change in EBIT?
a. 5%.
b. 15%.
c. 30%.
d. 45%.
52.) The degree of operating leverage is measured by relating the percentage change in EBIT to the percentage change in __________.
a. sales.
b. earnings per share.
c. debt ratio.
d. share price.
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
