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A firm has determined that its degree of operat- ing leverage (DOL) is 5 and that its degree of financial leverage (DFL) is 2. As

A firm has determined that its degree of operat- ing leverage (DOL) is 5 and that its degree of financial leverage (DFL) is 2. As a result, what will be the change in its expected EPS if sales are 7 percent lower than expected?

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