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    Contemporary Financial Management Study Set 2
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    Exam 17: Capital Structure Management in Practice
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    Last Year Avator's Operating Income (EBIT) Increased by 22% While
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Last Year Avator's Operating Income (EBIT) Increased by 22% While

Question 36

Question 36

Multiple Choice

Last year Avator's operating income (EBIT) increased by 22% while its dollar sales increased by 15%. What is Avator's degree of operating leverage (DOL) ?


A) 0.68
B) 2.0
C) 1.47
D) 0.32

Correct Answer:

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