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:

Arsenal of Venice

A historic shipyard and arms depot in Venice, renowned for its role in the maritime power and economic success of the Venetian Republic.

Galleons

Were large multi-decked sailing ships used primarily by European states from the 16th to 18th centuries, mainly for oceanic exploration and warfare.

Gainsharing Plan

A program designed to encourage teamwork, improvement of performance and productivity, by sharing with employees the gains achieved through their efforts.

Job Design Strategies

Job design strategies involve creating roles and responsibilities within an organization that enhance worker satisfaction and productivity.