Multiple Choice
What would be the degree of financial leverage for Foggy Futures Weather Forecasters if the company has earnings before interest and taxes of$750,000, has a 4.5% loan on $1,000,000 and is in the 38% tax bracket? The firm does not have any preferred stock outstanding.
A) 1.22
B) 1.78
C) 1.06
D) 97
Correct Answer:
Verified
Correct Answer:
Verified
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