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CFA Level 1 Exam
3959 Questions
Question No. 1
Assume that a firm has a degree of financial leverage of 1.25. If sales increase by 20 percent, the firm will experience a 60 percent increase in EPS, and it will have an EBIT of $100,000. What will be the EBIT for this firm if sales do not increase?
Choose the correct option from the given list.
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