Question

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.

Answer 1

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


I hope it helped you!


I