Question
Berkshire Hathaway Inc. issued $500 million in debt at an interest rate of 6% and used the proceeds to finance an investment project that generated
Berkshire Hathaway Inc. issued $500 million in debt at an interest rate of 6% and used the proceeds to finance an investment project that generated additional earnings before interest and taxes (EBIT) of $100 million. Calculate the financial leverage multiplier for Berkshire Hathaway.
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Financial Accounting
Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac
14th edition
1305088433, 978-1305088436
