Over a period of one year, Mono Corp. saw it sales increase by 16% ...

By Investopedia Staff AAA
Q:

Over a period of one year, Mono Corp. saw it sales increase by 16%. Over the same period, its EBIT increased from $895,000 over to $1,235,000 and its net income rose from $254,000 over to $436,000. If Mono Corp.'s tax rate is 35%, what must be its degree of financial leverage?
a) 2.345
b) 0.530
c) 1.886
d) 1.536

A:

The correct answer is: c)


RELATED FAQS

  1. The Shur-Gro variable annuity uses an AIR of 3% for those contract holders who are ...

    The correct answer is b. Any time the actual growth rate of the separate account exceeds the account’s AIR, the payment will ...
  2. Sometimes investment banking firms allocate shares of hot issues to the personal ...

    The correct answer is a) Spinning is the act of selling hot issues to the personal accounts of corporate officers which in ...
  3. Donald has been putting aside money for his retirement into a Roth IRA for six years.  Although ...

    The correct answer is A) In a Roth IRA, there is no required distribution date as there is in a traditional IRA.
  4. A 7-year, 6% coupon callable bond is currently trading at 96.25.  The ...

    Free info on financial certification exams including study guides, exam questions, and much more!
RELATED TERMS
  1. No results found.

You May Also Like

Related Articles
  1. No results found.
Trading Center