medium · Corporate Credit Analysis
A borrower has Revenue of $1 billion, Variable Costs of $650 million, and Fixed Costs of $250 million.
If the firm adds back $15 million in 'run-rate cost savings' to its EBITDA, what is the pro-forma Degree of Operating Leverage (DOL)?
- 2.80x
- 1.00x
- 3.50x
- 3.04x
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