Question
In: Finance
Terrible Clips has a degree of financial leverage of 2.45 and a degree of combined leverage...
Terrible Clips has a degree of financial leverage of 2.45 and a degree of combined leverage of 9.32. What percentage change will a 25 percent increase in sales have on EBIT?
Solutions
Expert Solution
DOL = DCL / DFL = 9.32 / 2.45 = 3.80408
Percentage change = 0.25 * 3.80408
Percentage change = 0.95 or 95%
jeff jeffy answered 2 years agoRelated Solutions
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Group of answer choices
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