Final answer:
The statement is false. A DFL of 2.0 indicates a 2% change in EPS for every 1% change in operating income, not sales volume. DFL measures the change in EPS due to operating income fluctuations.
Step-by-step explanation:
The statement "If a firm has a DFL of 2.0, EPS will change 2% for every 1% change in volume" is False. DFL, or degree of financial leverage, measures the sensitivity of a company's earnings per share (EPS) to changes in its operating income. A DFL of 2.0 means that for every 1% change in operating income, there will be a corresponding 2% change in EPS, not a 2% change for every 1% change in volume. Volume changes affect sales and potentially operating income, but the relationship between volume changes and EPS is not directly measured by DFL alone.