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The CFO of The Chop Shop has determined that the company's degree of operating leverage (DOL) is 2.5x and that its degree of financial leverage
The CFO of The Chop Shop has determined that the company's degree of operating leverage (DOL) is 2.5x and that its degree of financial leverage (DFL) is 3x. According to this information, how will the firm's EPS be affected if its amount of EBIT turns out to be 5% higher than expected?
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