Firms net operating income


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) = 2.0, and its

(b) degree of financial leverage (DFL) = 3.0? (b) its

(c) DOL = 1.5 and DFL = 2.0?

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Macroeconomics: Firms net operating income
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