Texas Instruments is a global leader in the semiconductor business, providing products to the worlds most innovative electronics companies Its financial statements reported the following at year end (in millions) Total assets $13,930 Total debt (average 8 interest) 2,570 Net income (average tax rat...

Rate of return on equity 4341 1 ...

Texas Instruments is a global leader in the semiconductor business, providing products to the worlds most innovative

Question:

Texas Instruments is a global leader in the semiconductor business, providing products to the world’s most innovative electronics companies. Its reported the following at year-end (in millions):
Total assets ............ $13,930
Total debt (average 8% interest) ... 2,570
Net income (average tax rate 30%) ... 4,341
Required:
Compute the financial leverage percentage. Was it positive or negative?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...