A DFL (Degree of Financial Leverage) of 3

question 27

Multiple Choice

A DFL (degree of financial leverage) of 3.0 indicates a 27% increase in EPS is the result of a(n) ____ increase in EBIT.

• A) 81%
• B) 3%
• C) 9%
• D) 6%

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Definitions:

Variety of Tasks

A range of different duties or activities that a person performs or is responsible for.

Task Specialisation

The division of labor where individuals or groups focus on a narrow set of tasks, improving efficiency and expertise.

Job Scope

The extent of the range of responsibilities, duties, and tasks that a particular job entails.

Job Depth

The degree of control, decision-making power, and responsibility granted to an employee within their role, often related to the complexity and scope of the tasks they perform.