Use the Information for the Question(s)below

question 31

Multiple Choice

Use the information for the question(s) below.
Fly by Night Aviation (FBNA) expects to have net income next year of $24 million and interest expense of $3 million.FBNA's corporate tax rate is 21%.
-IF FBNA increases leverage so that its interest expense rises by $1 million,then the amount its net income will change is closest to:

• A)-$400,000.
• B)-$600,000.
• C)$400,000.
• D)$600,000.

---

Definitions:

Apalachee Indians

A Native American people historically living in the Florida Panhandle, they were known for their agricultural practices, trade networks, and mound-building.

Governmental Structure

The organizational framework that dictates how a government is run, including the division of powers, roles, and responsibilities among its parts.

Charles II

The king of England, Scotland, and Ireland who reigned during the Restoration period (1660-1685) after the English Civil War, known for his policies of religious tolerance.

New Netherlands

A 17th-century colonial province of the Dutch Republic that encompassed parts of what is now the northeastern United States.