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If EBIT Equals $140,000 and Interest Equals $21,000,with a Tax

Question 83

Multiple Choice

If EBIT equals $140,000 and interest equals $21,000,with a tax rate of 31%,what is the degree of financial leverage?

A) 6.67x
B) 5.67x
C) 3.91x
D) 1.18x

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