Multiple Choice
Assume that a firm currently has EBIT of $2,000,000,a degree of total leverage of 7.5,and a degree of financial leverage of 1.875.If sales decline by 20% next year,then what will be the firm's expected EBIT in one year?
A) $361,000
B) $380,000
C) $400,000
D) $420,000
E) $441,000
Correct Answer:
Verified
Correct Answer:
Verified
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