BUSINESS FINANCE I Dersi Cost-Volume-Profit (CVP) Analysis soru detayı:

CEVAP:

The degree of financial leverage estimates the effect of debt financing on the net income. It is a measure of sensitivity in EPS(earnings per share) to operating income fluctuations as the result of the variations in financial leverage. The DFL is a multiple determining the change in the EPS by a percentage change in the operating income.