A company has an EBIT of $2,400,000 and an interest expense of $300,000. What is its DFL? a. 8.0 b. 0.125 c. 1.1429 d. Not enough information to determine the answer.
A company has an EBIT of $2,400,000 and an interest expense of $300,000. What is its DFL? a. 8.0 b. 0.125 c. 1.1429 d. Not enough information to determine the answer.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3P
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Transcribed Image Text:A company has an EBIT of $2,400,000 and an
interest expense of $300,000. What is its DFL?
a. 8.0
b. 0.125
c. 1.1429
d. Not enough information to determine the answer.
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