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A. Calculate the degree of financial leverage in base Year 1. b. If earnings before interest and tax increase by 10% in Year 2, what
- A. Calculate the degree of financial leverage in base Year 1. b. If earnings before interest and tax increase by 10% in Year 2, what will be the new level of earnings, assuming the same tax rate as in Year 1? c. If earnings before interest and tax decrease to $800,000 in Year 2, what will be the new level of earnings, assuming the same tax rate as in Year 1?
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Financial Reporting And Analysis Using Financial Accounting Information
Authors: Charles H Gibson
12th Edition
1439080607, 978-1439080603
