Skip to content
Tags

Degree of Financial Leverage

June 28, 2012
  • DFL = [Q(P-V) – F] / [Q(P-V) – F – C]
  • Q is the number of units
  • P is the price per unit
  • V is the variable operating cost per unit
  • F is the fixed operating costs
  • C is the fixed financial costs
Advertisements
Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: