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Degree Of Combined Leverage

Degree of Combined Leverage

The percentage change in a firm’s earning per share (EPS) results from one percent change in sales. This is also equal to the firm’s degree of operating leverage (DOL) times its degree of financial leverage (DFL) at a particular level of sales.

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Degree of combined leverage = Percentage change in EPS / Percentage change in sales

Degree Of Combined Leverage Degree Of Combined Leverage Reviewed by Ikpokolo Francis on Thursday, June 08, 2017 Rating: 5

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