UPDATED******

Gordon's Plants has the following partial income statement for 2015:

Earnings before interest and taxes $4,500

Interest (2000)

=

Earnings before taxes $2,500

Taxes (40%) (1000)

=

Net income $1500

=

Number of common shares 1000

What is the degree of financial leverage for Gordon's? What does this value

mean?

just a study review sheet question for a test tomorrow, not using to answer for a homework.

=

Number of common shares 1000

What is the degree of financial leverage for Gordon's? What does this value

mean?

just a study review sheet question for a test tomorrow, not using to answer for a homework. please answer as soon as possible