Luxury leisures forecasted ebit is 750000 this year luxury


Luxury Leisure's forecasted EBIT is $750,000. This year, Luxury will pay $250,000 interest on its debt and $320,000 dividends to its common stockholders. If its marginal tax rate is 40 percent, what is Luxury's degree of financial leverage (DFL)?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Luxury leisures forecasted ebit is 750000 this year luxury
Reference No:- TGS02190552

Expected delivery within 24 Hours