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Manchu Company Had Net Income of $140,000 and Interest Expense

Question 63

Multiple Choice

Manchu company had net income of $140,000 and interest expense of $30,000. If the corporate tax rate was 30%, determine its Degree of Financial Leverage (DFL) .


A) 1.00
B) 1.05
C) 1.10
D) 1.15
E) 1.20

Correct Answer:

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