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Degree Of Financial Leverage

Degree of Financial Leverage

Degree of financial leverage may be defined as the percentage change in taxable profit as a result of percentage change in earning before interest and tax (EBIT).

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This can be calculated by the following formula

DFL= Percentage change in taxable Income / Percentage change in EBIT

Degree Of Financial Leverage Degree Of Financial Leverage Reviewed by Blog Editor on Friday, June 02, 2017 Rating: 5

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