Multiple Choice
Assume that a firm currently has EBIT of $2,000,000,a degree of total leverage of 7.500,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? Do not round intermediate calculations.
A) $464,000
B) $400,000
C) $488,000
D) $372,000
E) $324,000
Correct Answer:
Verified
Correct Answer:
Verified
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