medium · Principles of Finance cost-of-capital-structure

A firm has an EBIT of 500M and interest expense of 100M. If its Degree of Operating Leverage (DOL) is 2.0, what is the firm's Degree of Total Leverage (DTL)?

  1. 1.25
  2. 2.00
  3. 2.50
  4. 3.25

Sign up free to see the explanation and track your rank →

More Principles of Finance cost-of-capital-structure practice

KomFi Academy — Stop doomscrolling. Get KomFi.

Build your intelligence, anytime, anywhere.

KomFi Academy is a curated training platform with 46,000+ practice questions, 20,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks across the topics serious professionals study: GMAT, LSAT, MCAT, Investment Banking, Private Equity (LBOs & PE math), Private Credit, Quantitative Finance, Financial Accounting, Asset- Backed Securities, Volume Profile Analysis, Order Flow Trading, Market Microstructure, Volume Spread Analysis, Elliott Wave Theory, Volume-Price Analysis, and Public Offering Frameworks.

What's inside

Topics

View pricing · Read testimonials