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Globo Tech Inc.'s operating leverage is 8.5. If the company's sales increase by 12%, its net operating income should increase by about: Options: A) 102.0% B) 8.5% C) 144.5% D) 75.0%

Globo Tech Inc.'s operating leverage is 8.5. If the company's sales increase by 12%, its net operating income should increase by about: Options: A) 102.0% B) 8.5% C) 144.5% D) 75.0%

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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Globo Tech Inc.'s operating leverage is 8.5. If the company's sales increase by 12%, its net operating income should increase by about: Options: A) 102.0% B) 8.5% C) 144.5% D) 75.0%
Transcribed Image Text:Globo Tech Inc.'s operating leverage is 8.5. If the company's sales increase by 12%, its net operating income should increase by about: Options: A) 102.0% B) 8.5% C) 144.5% D) 75.0%
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