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Need help with the following problem. Please show work 7. (8 points) Financial Leverage PinPoint's EBIT is this year is $20,000. They paid $16,000 in

Need help with the following problem. Please show work

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7. (8 points) Financial Leverage PinPoint's EBIT is this year is $20,000. They paid $16,000 in interest and $15,000 in Dividends. The tax rate is 40%. a. What is their DFL? b. Check your answer by calculating current net income and net income with a 20% increase

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