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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:
4WD Vehicles
Vehicles equipped with a four-wheel-drive system that can provide power to all four wheels simultaneously, offering better traction in off-road or adverse conditions.
Transaxle
A single mechanical device that combines the functions of an automobile's transmission, axle, and differential into one integrated unit, commonly found in front-wheel-drive vehicles.
Front-Wheel Drive
A vehicle configuration where the engine's power is transmitted to the front wheels, providing propulsion.
RWD Configuration
A vehicle drivetrain layout where the rear wheels receive power from the engine, offering benefits in handling and traction under certain conditions.
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