Given the Following Information Extracted from the Income Statement of Widget

question 28

Multiple Choice

Given the following information extracted from the income statement of Widget Company ( Widget Company has no depreciation or amortization expenses) ,

The degree of total leverage of Widget Company is closest to:

• A) 2.80
• B) 3.25
• C) 3.50
• D) 4.00

---

Definitions:

Customary Law

Legal norms that have developed over time from established practices and traditions within a specific community or culture.

Civil Law

A system of law that provides a comprehensive code of written law that judges translate into legal principles and regulatory statutes.

Civil Law

A legal system that uses a comprehensive set of laws as a framework for legal proceedings.

Ancient Roman

Pertaining to the civilization of Rome from its founding in the 8th century BC to the collapse of the Western Roman Empire in the 5th century AD.