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HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

Degree of Combined Leverage

A leverage ratio that summarizes the combined effect the degree of operating leverage and the degree of financial leverage has on earnings per share, given a particular change in sales.

This ratio can be used to help determine the most optimal level of financial and operating leverage to use in any firm.

of

o = degree of oprating leverage f = degree of financial leverage

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