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Suppose that a firm has a degree of financial leverage (DFL) that is greater than 1.0; that is, DFL > 1. If the firm's sales
Suppose that a firm has a degree of financial leverage (DFL) that is greater than 1.0; that is, DFL > 1. If the firm's sales decrease by 1 percent, its will decrease by more than 1 percent. fixed financing costs net operating income (NOI) earnings per share (EPS) variable costs interest expense
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