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A 20% increase in sales causes EPS to rise from $4.00 to $6.50. Assuming the firm has no debt, what is its degree of operating

A 20% increase in sales causes EPS to rise from $4.00 to $6.50. Assuming the firm has no debt, what is its degree of operating leverage (DOL)?

A. 3.13 B. 2.25 C. 1.50 D. 1.57 E. 1.00

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