Use the Information for the Question(s)below

question 30

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 unlevered EBIT will change is closest to:

• A)$0.
• B)-$400,000.
• C)$600,000.
• D)$400,000.

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Definitions:

Benefits Information

Refers to details provided to employees regarding their entitlements, such as health insurance, retirement plans, and other perks associated with their employment.

Communicating Benefits

The process of informing employees about their compensation, health insurance, and other employment benefits.

Healthcare Subsidized

A situation where government or another entity provides financial assistance to reduce the cost of health care for individuals, making it more accessible and affordable.

Benefits Costs

The expenses that an organization incurs to provide benefits to its employees, including health insurance, retirement plans, and paid time off.