Business Studies, asked by agilandon9867, 1 year ago

What is the degree of operating leverage how it.Is determing capital strucutre?

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Answered by GENIUS1223

Degree of operating leverage enables us to measure the business risk associated with the firm. ... It is determined by the capital structure of the firm. • It is the firm's ability to use fixed financial charges to magnify the effects of changes in EBIT on its earnings per share.

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