Degree of financial leverage

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How much will a 10% increase in sales increase a firm's net operating income (NOI) and increase its net income (NI), if: its degree of operating leverage (DOL) = 2.0, and its degree of financial leverage (DFL) = 3.0? (b) its DOL = 2.5 and DFL = 4.0?

Reference no: EM13768625

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Degree of financial leverage : How much will a 10% increase in sales increase a firm's net operating income (NOI) and increase its net income (NI), if: its degree of operating leverage (DOL) = 2.0, and its degree of financial leverage (DFL) = 3.0? (b) its DOL = 2.5 and DFL = 4...
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