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A firm has a degree of financial leverage of 1.20. If earnings before interest and tax increase by 20%, then net income: A. will decrease
A firm has a degree of financial leverage of 1.20. If earnings before interest and tax increase by 20%, then net income: A. will decrease by 20%. B. will increase by 20%. C. will decrease by 24%. D. will increase by 24%
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Financial And Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
14th Edition
9781337119207
