is it lower the better? Thanks.作者: Pegasus2008 时间: 2011-7-13 16:52
lower DOL -> lower risk -> lower potential return
so define "better" first..作者: DSquaredSlim 时间: 2011-7-13 16:52
yes, the lower the better
the lower DOL, the less volatile EBIT to the change of sales.作者: troymo 时间: 2011-7-13 16:53
agree it all depends...if my DOL is 2.5 and my WACC is 8% while company B's DOL is only 1.5 but their WACC is 12%, i am better off despite having higher leverage
