Question
Parker Investments has EBIT of $19,300, interest expense of $3,010, and preferred dividends of $4,000. If it pays taxes at a rate of 38 %,
Parker Investments has EBIT of $19,300, interest expense of $3,010, and preferred dividends of
$4,000. If it pays taxes at a rate of 38 %, what isParker's degree of financial leverage (DFL) at a base level of EBIT of $19,300?
The degree of financial leverage is ______. (Round to two decimalplaces.)
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Principles Of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
13th Edition
9780132738729, 136119468, 132738724, 978-0136119463
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