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Unformatted text preview: leverage. * Describe the impact of leverage on operating profits and net income/EPS . * Distinguish between operating leverage and financial leverage . * Measure the amount of leverage inherent in a firm’s operations. * Predict the impact of changes in sales or operating profits . * Mind Map Key Words/Concepts: * Financial Leverage * Operating Leverage * DOL, DFL, DCL * Fixed Cost * Break-Even * Contribution Margin...
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- Summer '11