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The CFO of Amateur Manufacturing computed the firm's degree of operating leverage (DOL) and degree of financial leverage (DFL). If Amateur's DOL = 2.5 and
The CFO of Amateur Manufacturing computed the firm's degree of operating leverage (DOL) and degree of financial leverage (DFL). If Amateur's DOL = 2.5 and its DFL = 4.0, what is its degree of total leverage (DTL)
a. 1.6
b. 2.5
c. 10.0
d. 0.6
e. 4.0
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