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

question 6

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) 0.8125x
• D) 4.33x

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Definitions:

Gold Star

A symbol of praise or achievement, often used in educational and military contexts to signify excellence or high standards.

Systematic Desensitization

A behavioral therapy technique aimed at reducing phobic or anxiety responses through gradual exposure to the feared object or situation, combined with relaxation exercises.

Contingency Contract

A behavioral intervention technique that involves a formal agreement between two parties to reinforce desired behaviors with rewards or consequences.

Token Economy

A system of behavior modification based on the systematic reinforcement of target behavior through the exchange of tokens that can be exchanged for other reinforcements.