Question
Parker Investments has EBIT of $19,700, interest expense of $3,090, and preferred dividends of $4,080. If it pays taxes at a rate of 38%, what
Parker Investments has EBIT of $19,700, interest expense of $3,090, and preferred dividends of $4,080. If it pays taxes at a rate of 38%, what is Parker's degree of financial leverage (DFL) at a base level of EBIT of $19,700?
The degree of financial leverage is
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
