A degree of operating leverage of 5 times indicates that for every 1 percent change in EPS there will be a 1.5 percent change in sales O for every 1 percent change in interest there will be a 5 percent change in EBIT O for every 1 percent change in sales there will be a 1.5 percent change in EBIT O for every 1 percent change in EBIT there will be a 1.5 percent change in EPS What does a degree of financial leverage (DFL) of 2.0 indicate? For every 1 percent change in sales, the EBIT will change by 2 percent. For every 1 percent change in EPS, the sales will change by 2 percent. For every 1 percent change in EBIT, the EPS will change by 2 percent. For every 1 percent change in EPS, the EBIT will change by 4 percent. O For every 1 percent change in EBIT, the sales will change by 6 percent. Please use the following information for questins 16 to 18: % Change in Sales = 25% % Change in EBIT = 50% % Change in Net Income or EPS = 150% Per above information, the Degree of Operating Leverage is: O 1.5 2. 2 3 3 04 Please use the following information for questions 16 to 18: % Change in Sales = 25% % Change in EBIT = 50% % Change in Net Income or EPS =150% Per information given above question #16, the Degree of Financial Leverage is: 02 3 O 5 O 1.5