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If EBIT Equals $280,000 and Interest Equals $20,000,with a Tax

Question 47

Multiple Choice

If EBIT equals $280,000 and interest equals $20,000,with a tax rate of 31%,what is the degree of financial leverage?

A) 14.00x
B) 9.66x
C) 3.91x
D) 1.88x

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