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    Exam 18: Capital Structure and the Cost of Capital
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    If a Firm Has Current Earnings Before Interest and Taxes
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If a Firm Has Current Earnings Before Interest and Taxes

Question 120

Question 120

Multiple Choice

If a firm has current earnings before interest and taxes of $100,000 and interest expense of $10,000, its degree of financial leverage would be:


A) 10
B) 1.11
C) .10
D) cannot tell from this information

Correct Answer:

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