Question
Muddy Murphys degree of financial leverage (DFL) is 4. The company knows that if sales are 6 percent higher than forecasted, its EPS will in-
Muddy Murphys degree of financial leverage (DFL) is 4. The company knows that if sales are 6 percent higher than forecasted, its EPS will in- crease by 36 percent. What is Muddys degree of operating leverage (DOL)?
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Handbook Of Financial Planning And Control
Authors: Robert P. Greenwood
3rd Edition
0566083728, 978-0566083723
