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The degree of financial leverage for zorro company was 1.50 when ebit was reported at $1,000,000. if ebit goes to $2,000,000, the accompanying change in net income will be 1. $2,500,000. 2. $3,000,000. 3. $2,000,000. 4. $1,500,000. 5. $1,000,000.

User Zury
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1 Answer

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I think the most appropriate would be (4) $1,500,000.


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User Bmueller
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