8. Max Small has outstanding school loans that require a monthly payment of $1,090. He needs to buy a Financial leverage new car for work and estimates that this purchase will add S346 per month to his existing monthly obligations. Max will have $2,990 available after meeting all of his monthly living (operating) expenses. This amount could vary by plus or minus 9% a. To assess the potential impact of the additional borrowing on his financial leverage, calculate the DFL in tabular form for both the current and proposed loan payments using Max's available $2.990 as a base and a 9% change b. Can Max afford the additional loan payment? c. Should Max take on the additional loan payment? a. To assess the potential impact of the additional borrowing on his financial leverage, calculate the DFL in tabular form for both the current and proposed loan payments using Max's available $2,990 as a base and a 9% change Complete the table below to compute the current DFL: (Round to the nearest dollar and the percentage change to one decimal place.) Current DFL Available for making loan payments Less: Existing monthly loan payments $ Available after loan payments +9% Complete the table below to compute the proposed DFL: (Round to the nearest dollar and the percentage change to one decimal place.) Proposed DFL +9% Available for making loan payments Less: Proposed monthly loan payments Available after loan payments $ . (Round to two decimal places.) The current DFL is The proposed DFL is b. Can Max afford the additional loan payment? (Select from the drop-down menu.) Max (1) c. Should Max take on the additional loan payment? Is the statement below true or false? (2) "Although it appears that Max can afford the additional loan payments, he must decide if, given the variability of his income, (Round to two decimal places.) afford the additional loan payment. (Select from the drop-down menu.) he would feel comfortable with the increased financial leverage and risk." (1)can't (2) False O True can 8. Max Small has outstanding school loans that require a monthly payment of $1,090. He needs to buy a Financial leverage new car for work and estimates that this purchase will add S346 per month to his existing monthly obligations. Max will have $2,990 available after meeting all of his monthly living (operating) expenses. This amount could vary by plus or minus 9% a. To assess the potential impact of the additional borrowing on his financial leverage, calculate the DFL in tabular form for both the current and proposed loan payments using Max's available $2.990 as a base and a 9% change b. Can Max afford the additional loan payment? c. Should Max take on the additional loan payment? a. To assess the potential impact of the additional borrowing on his financial leverage, calculate the DFL in tabular form for both the current and proposed loan payments using Max's available $2,990 as a base and a 9% change Complete the table below to compute the current DFL: (Round to the nearest dollar and the percentage change to one decimal place.) Current DFL Available for making loan payments Less: Existing monthly loan payments $ Available after loan payments +9% Complete the table below to compute the proposed DFL: (Round to the nearest dollar and the percentage change to one decimal place.) Proposed DFL +9% Available for making loan payments Less: Proposed monthly loan payments Available after loan payments $ . (Round to two decimal places.) The current DFL is The proposed DFL is b. Can Max afford the additional loan payment? (Select from the drop-down menu.) Max (1) c. Should Max take on the additional loan payment? Is the statement below true or false? (2) "Although it appears that Max can afford the additional loan payments, he must decide if, given the variability of his income, (Round to two decimal places.) afford the additional loan payment. (Select from the drop-down menu.) he would feel comfortable with the increased financial leverage and risk." (1)can't (2) False O True can