If the degree of accounting leverage is 1.3 for a firm, then a 10 percent increase in revenue should drive a

If the degree of accounting leverage is 1.3 for a firm, then a 10 percent increase in revenue should drive a

If the degree of accounting leverage is 1.3 for a firm, then a 10 percent increase in revenue should drive a










A) 13% increase in pretax operating cash flows.
B) 13% increase in EBIT.
C) 30% increase in EBIT.
D) none of the above.










Answer: B