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:

Food Foragers

Food foragers are individuals or groups who sustain themselves by collecting wild plants, hunting animals, and gathering other food resources available in their environment.

Food Production

The process that involves growing crops and raising livestock for human consumption.

Paleolithic Villages

Early human settlements dating from the Paleolithic era, characterized by simple structures and tools, and a hunter-gatherer way of life.

Toolmaking

The process of creating instruments or devices that can be used to perform functions, traditionally associated with human development.