The Chen Corp

question 17

Multiple Choice

The Chen Corp. in 2016 had revenues of $1,200, variable costs of $600, fixed operating costs of $200, interest expenses of $100, no taxes, and net income = $300. The total leverage effect for this company is

• A) 1
• B) 1.33
• C) 3
• D) 4

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Government Takeover

A situation in which a government assumes control over a private company, sector, or the entire economy.

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