Economics · Financial Management
The Degree of Financial Leverage (DFL) measures the sensitivity of:
- 1Operating income to changes in total revenues
- 2Net income to changes in total revenues
- 3Earnings per share to changes in total revenues
- 4Earnings per share (EPS) to changes in Operating Income (EBIT)✓
Correct answer
Earnings per share (EPS) to changes in Operating Income (EBIT)
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