Question
If the degree of accounting leverage is 1.3 for a company, then a 10 per cent increase in revenue should drive a: A. 13% increase
If the degree of accounting leverage is 1.3 for a company, then a 10 per cent increase in revenue should drive a:
A. 13% increase in pre-tax operating cash flows.
B. 13% increase in EBIT.
C. 30% increase in EBIT.
D. None of the options listed.
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Public Finance and Public Policy
Authors: Jonathan Gruber
4th edition
1429278455, 978-1429278454
