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Figure 5-5: If higher earnings are better, then doesnt this graph suggest that companies should maximize the DCL? Figure 5-5 Combining operating and financial leverage

Figure 5-5: If higher earnings are better, then doesnt this graph suggest that companies should maximize the DCL?

Figure 5-5 Combining operating and financial leverage Earnings generated EPS = $1.50 Financial leverage Operating income = EBIT $36,000 $36,000 Operating leverage Sales $160,000 Leverage impact

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