Question
Wells and Associates has EBIT of $ 74,700. Interest costs are $ 15,000, and the firm has 14,400 shares of common stock outstanding. Assume a
Wells and Associates has EBIT of $ 74,700. Interest costs are $ 15,000, and the firm has 14,400 shares of common stock outstanding. Assume a 40 % tax rate. Use the degree of financial leverage (DFL) formula, how much is the DFL for the firm? (Round to two decimal places.)
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Econophysics And Financial Economics An Emerging Dialogue
Authors: Franck Jovanovic, Christophe Schinckus
1st Edition
0190205032, 9780190205034
