Question
If a company has a EBIT is 10,000 and the interest payments on debt of $1,000: 1)Degree of financial leverage relates changes in EBIT to
If a company has a EBIT is 10,000 and the interest payments on debt of $1,000:
1)Degree of financial leverage relates changes in EBIT to changes in earnings per share
2)The degree of financial leverage is 1.11
3)The degree of financial leverage is 1.00
4)The firm has more financial risk the an unlevered firm
5)1,2,and 3 are all correct
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An Introduction To Socio-Finance
Authors: Jørgen Vitting Andersen, Andrzej Nowak
2013th Edition
3642419437, 978-3642419430
