Fundamentals of Financial Management mcq practice set 4

Q121. The degree of operating leverage is calculated as: a. Percentage change in EBIT divided by percentage change in sales. b. Percentage change in sales divided by percentage change in EBIT. c. EBIT divided by net sales. d. Net sales divided by EBIT. AnswerAnswer: a. Percentage change in EBIT divided by percentage change in sales….

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