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Velocity Dynamics Ltd. has a degree of pretax cash flow operating leverage equal to 1.20. If the firm's EBITDA was $3,000 last year while its depreciation and amortization expense was $200 in the same year, what was the firm's degree of accounting operating leverage?

Velocity Dynamics Ltd. has a degree of pretax cash flow operating leverage equal to 1.20. If the firm's EBITDA was $3,000 last year while its depreciation and amortization expense was $200 in the same year, what was the firm's degree of accounting operating leverage?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 10P
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Financial Accounting

Velocity Dynamics Ltd. has a degree of pretax cash flow operating leverage equal to 1.20. If the firm's EBITDA was $3,000 last year while its depreciation and amortization expense was $200 in the same year, what was the firm's degree of accounting operating leverage?
Transcribed Image Text:Velocity Dynamics Ltd. has a degree of pretax cash flow operating leverage equal to 1.20. If the firm's EBITDA was $3,000 last year while its depreciation and amortization expense was $200 in the same year, what was the firm's degree of accounting operating leverage?
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