The degree of leverage concept is designed to show how, Financial Management

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The degree of leverage concept is designed to show how

The "degree of leverage" concept is designed to show how changes in sales will affect EBIT and EPS. If a 15 percent increase in sales causes EPS to increase from $5.00 to $7.00, and if the firm uses no debt, then what is its degree of operating leverage? (Please only enter number. For example, if your answer is 2.33, enter 2.3)

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