Mathematics · Leverage Analysis
If a company's Degree of Financial Leverage (DFL) is 2.5, it means that a 10 percent change in EBIT will result in what percentage change in Earnings Per Share (EPS)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 112.5 percent
- 225 percent✓
- 32.5 percent
- 410 percent
Correct answer
25 percent
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