If EBIT Equals $200,000 and Interest Equals $40,000, What Is

question 31

Multiple Choice

If EBIT equals $200,000 and interest equals $40,000, what is the degree of financial leverage?

• A) 5.33x
• B) 1.25x
• C) .8125x
• D) 4.33x

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Definitions:

African Elements

Components or influences derived from the African continent, seen in culture, languages, music, and more, reflecting its diverse heritage.

Stono Rebellion

A significant slave uprising that commenced on September 9, 1739, in South Carolina, leading to a severe tightening of the slave codes and the temporal halting of slave importation from Africa.

West Africans

People originating from the western region of the African continent, which includes countries like Nigeria, Ghana, Senegal, and Mali, known for rich cultural heritage and historical civilizations.

Rice

A staple food grain consumed worldwide, regarded as an essential part of many cultures' diets and a primary agricultural product in numerous countries.