Should increase or decrease leverage

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Reference no: EM132696538

Question 1: A manager believes that her company will do extremely well in the upcoming year, surpassing others' expectations. Should she increase or decrease her leverage?

Question 2: A firm believes that if sales increase by 2%, their EBIT will increase by 3%. What is their degree of operating leverage?

Question 3: A firm believes that if sales increase by 3%, their Net Income will increase by 5%. What is there degree of total leverage?

Reference no: EM132696538

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