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Author Question: A 20% increase in sales causes EPS to rise from $4.00 to $6.50. Assuming the firm has no debt, what ... (Read 54 times)

Sportsfan2111

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Question 1

A 10% increase in sales causes EPS to rise from $0.50 to $0.56. Assuming the firm has no debt, what is its degree of operating leverage (DOL)?
◦ 1.00
◦ 1.20
◦ 0.83
◦ 1.50
◦ 0.75

Question 2

A 20% increase in sales causes EPS to rise from $4.00 to $6.50. Assuming the firm has no debt, what is its degree of operating leverage (DOL)?
◦ 1.00
◦ 1.50
◦ 1.57
◦ 3.13
◦ 2.25


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Marked as best answer by Sportsfan2111 on Apr 25, 2021

InfiniteSteez

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Sportsfan2111

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


diana chang

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Reply 3 on: Yesterday
Excellent

 

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