Question
BICs EBIT is this year is $80,000. They paid $20,000 in interest and $25,000 in Dividends. The tax rate is 40%. A. What is their
BICs EBIT is this year is $80,000. They paid $20,000 in interest and $25,000 in Dividends. The tax rate is 40%.
A. What is their DFL? Note: DFL = EBIT/ (EBIT I)
B. Verify your answer by assuming a 10% increase in EBIT
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Research Methods Statistics and Applications
Authors: Kathrynn A. Adams, Eva Marie K. Lawrence
1st edition
1452220182, 978-1452220185
