53.) If a firm decreases its interest expense, which of the following is correct?

a. It will increase operational leverage and decrease financial leverage.

b. It will not change operational leverage and decrease financial leverage.

c. It will increase operational leverage and decrease financial leverage.

d. It will not change operational leverage and increase financial leverage.

54.) Zeus has a 2.5 DOL (degree of operating leverage) and a 2.0 DFL (degree of financial leverage). If it wants a 35% increase in EPS, what increase in sales does it need?

a. 6%.

b. 7%.

c. 9%.

d. 35%.