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What Would Be the Degree of Financial Leverage for Under

Question 22

Multiple Choice

What would be the degree of financial leverage for Under A Cloud Skydiving School if the company will have earnings before interest and taxes of $750,000 which would be a 15% increase? The firm had EPS of $1.25 but, with the increased earnings, anticipates paying $1.37.


A) .80
B) 1.08
C) 2.01
D) 1.25

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