Q. If a firm has a DOL of 2.8, it means: (Solved)
1. If sales increase by 2.8%, the EBIT will increase by 1%,
2. If EBIT increase by 2.896, the EPS will increase by 1 %,
3. If sales rise by 1%, EBIT will rise by 2.8%,
4. None of the above
- c. If sales rise by 1%, EBIT will rise by 2.8%,