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If a Given Change in EBIT Results in a Larger

Question 79

Multiple Choice

If a given change in EBIT results in a larger relative change in EPS then we can definitely say that the firm has


A) a degree of operating leverage greater than one.
B) a degree of operating leverage less than one.
C) a degree of financial leverage greater than one.
D) a degree of financial leverage less than one.
E) a degree of total leverage less than one.

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