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Assignment #8: Having these data: EBIT = Earnings before interest and taxes= 250,000 I = Interest=50,000 PD = Preferred dividends=70,000 t = Corporate tax rate=20%

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Assignment #8: Having these data: EBIT = Earnings before interest and taxes= 250,000 I = Interest=50,000 PD = Preferred dividends=70,000 t = Corporate tax rate=20% Find the Degree of Financial Leverage for the three situations: I PD t DOL1 NO NO NO DOL2 V NO NO DOL3 NO V V

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