Multiple Choice
The Fan Corp. in 2016 had revenues of $24,000, variable costs of $12,000, fixed operating costs of $4,000, interest expenses of $2,000, no taxes, and net income = $6,000. The financial leverage effect for this company is
A) 1.333
B) 2
C) 3
D) 4
Correct Answer:
Verified
Correct Answer:
Verified
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