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9 Cards in this Set
- Front
- Back
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Operating Leverage
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Variable / fixed cost tradeoff
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Financial Leverage
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The use of pfd or debt
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DOL
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.............%delta EBIT
DOL = ----------------- ............%delta sales |
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DFL
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..............%delta EPS
DFL = ------------------ .............%delta EBIT |
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DFL second form
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.............EBIT......%delta EPS.....
DFL = ----------- = ------------------ ...........EBIT - i....%delta EBIT.... |
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DTL =
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........................%delta EPS
(DOL)(DFL) = --------------------- .......................%delta Sales |
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DOL Sales =
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S - VC
----------------- S - VC - F |
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DOL Quantity =
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Q (P - V )
--------------- Q (P - V ) - F |
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%delta EPS =
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(DFL)(%change EBIT)
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