+1 862 207 3288 1. Axiom Company's degree of financial leverage is 1.5x. Also, Axiom knows that if sales increase by 10 percent, its earnings per share (EPS) will increase by 30 percent. What is Axiom's degree of operating leverage (DOL)?
2. A firm has determined that its degree of operating leverage (DOL) is 2.0x and its degree of financial leverage (DFL) is 1.5x. As a result, what will be the change in its earnings per share if sales are 10 percent lower than expected?
