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A firm believes that if sales increase by 2%, EBIT will increase by 3% and Net Income will increase by 5%. What is their degree

A firm believes that if sales increase by 2%, EBIT will increase by 3% and Net Income will increase by 5%. What is their degree of financial leverage?

a.

1.5

b.

1.67

c.

2.5

d.

0.4

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