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.

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Definitions:

Worked

Pertains to having engaged in activities, efforts, or jobs to achieve a specific outcome or result.

Date Rape Drugs

Substances used to incapacitate individuals with the intention of committing sexual assault or rape.

Date Rapes

Sexual assaults that occur in the context of a dating relationship, where the perpetrator and the victim are acquainted.

Batterers

Individuals who engage in repeated acts of physical or emotional abuse towards their partners or family members.