General Accounting Question solution with correct option A company has an EBIT of $2,400,000 and aninterest expense of $300,000. What is its DFL?a. 8.0b. 0.125C. 1.1429d. Not enough information to determine theanswer.

Step 1: Introduction to ratio analysisRatio analysis is a method used to analyze financial…

Answered: A company has an EBIT of $2,400,000 and…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4TP: You are considering two possible companies for investment purposes. The following data is available...

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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.