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  3. Study Set
    Foundations of Financial Management
  4. Exam
    Exam 5: Operating and Financial Leverage
  5. Question
    If EBIT Equals $200,000 and Interest Equals $40,000, What Is
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If EBIT Equals $200,000 and Interest Equals $40,000, What Is

Question 31

Question 31

Multiple Choice

If EBIT equals $200,000 and interest equals $40,000, what is the degree of financial leverage?


A) 5.33x
B) 1.25x
C) .8125x
D) 4.33x

Correct Answer:

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