Which of the following if the correct mathematical expression of the degree of financial leverage (DFL)?
A) DFL = %ÄEBT $\div$ %ÄEPS
B) DFL = %ÄEBIT $\div$ %ÄEPS
C) DFL = %ÄEPS $\div$ %ÄEBIT
D) DFL = %ÄEPS $\div$ %ÄEBT

Question

Which of the following if the correct mathematical expression of the degree of financial leverage (DFL)?
A) DFL = %ÄEBT $\div$  %ÄEPS
B) DFL = %ÄEBIT $\div$  %ÄEPS
C) DFL = %ÄEPS $\div$  %ÄEBIT
D) DFL = %ÄEPS $\div$  %ÄEBT

Quizplus · Accepted Answer

The degree of financial leverage (DFL) is calculated as the percentage change in earnings per share (EPS) divided by the percentage change in earnings before interest and taxes (EBIT).

Which of the Following If the Correct Mathematical Expression of the Degree