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Find firm degree of financial leverage at a base ebit level

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A firm has EBIT of $375,000, interest expense of $75,000, preferred dividends of $6,000 and a tax rate of 40%. The firm's degree of financial leverage at a base EBIT level of $375,000 is:

A. .97

B. 1.29

C. 1.27

D. 1.09

Reference no: EM131140506

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