What is luxury’s degree of financial leverage (dfl)

Reference no: EM131393908

Luxury Leisure's forecasted EBIT is $750,000. This year, Luxury will pay $250,000 interest on its debt and $320,000 dividends to its common stockholders. If its marginal tax rate is 40 percent, what is Luxury's degree of financial leverage (DFL)?

Reference no: EM131393908

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