| December 10, 2015

How much will a 15% increase in sales increase a firm’s net

operating income (NOI) and increase its net income (NI), if:

(a)       its degree of operating leverage (DOL) = 3.0, and its degree

of financial leverage (DFL) = 4.0? (b) its DOL = 2.0 and DFL = 2.5?

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capital budgeting

Category: Finance

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