Question

A corporate borrower reports an Earnings Before Interest and Taxes (EBI

  • L for this company?
  • T of ₹150. The company has a single long-term debt obligation that requires a fixed annual interest payment of ₹50. The firm has no preference shares. What is the Degree of Financial Leverage (DF
A 1.50
B 2.00
C 1.33
D 3.00
E 2.50
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