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Celestial Technologies has a degree of operating leverage of 1.20. If sales increase by 6.5%, by what percentage will operating cash flows change? A) 7.80% increase B) 8.25% increase C) 6.50% increase

Celestial Technologies has a degree of operating leverage of 1.20. If sales increase by 6.5%, by what percentage will operating cash flows change? A) 7.80% increase B) 8.25% increase C) 6.50% increase

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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Opereting cash flow

Celestial Technologies has a degree of operating leverage of 1.20. If sales increase by 6.5%, by what percentage will operating cash flows change? A) 7.80% increase B) 8.25% increase C) 6.50% increase
Transcribed Image Text:Celestial Technologies has a degree of operating leverage of 1.20. If sales increase by 6.5%, by what percentage will operating cash flows change? A) 7.80% increase B) 8.25% increase C) 6.50% increase
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