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Only one answer is correct, and that is one of the options.

Degree of Financial Leverage (DFL) = 4.81 means that a 1%.

A. Increase in EBIT; Increase earnings per share

B. Increase in sales; Decrease in earnings per share

C. Increase in EBIT; Increase in sales

D. Increase in sales; Decrease in EBIT

E. Increase in earnings per share; Increase in sales will result in a 4.81%