Page 4 - FINAL CFA I SLIDES JUNE 2019 DAY 11
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Session Unit 11:
37. Measures of Leverage
LOS 37.b: Calculate and interpret the degree of operating leverage, the degree of financial
leverage, and the degree of total leverage., p. 67
Degree of operating leverage (DOL) = % change in operating income (EBIT) resulting from a % in sales:
tanties
Interchangeable = Contribution/GP
in CFA exams! EBIT
