If the degree of financial leverage (DFL) is 1.5 and degree of total leverage (DTL) is 3,
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Question:
If the degree of financial leverage (DFL) is 1.5 and degree of total leverage (DTL) is 3, then what is the degree of operating leverage (DOL) for the firm? And For the above firm, by how much will the firms net income change if its EBIT decreases by 3%?
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