Answer: 1.29
Explanation:
The following can be deduced from the question:
EBIT = $375000
Interest expense = $75000
EBT = EBIT - Interest Expense
= $375000 - $75000
= $300000
Before tax preference dividend
= Preferred dividend / (1 - Tax rate)
= 6000 / (1 - 40%)
= 6000 / 60%
= 6000 / 0.6
= $10000
The firm's degree of financial leverage will then be:
= EBIT / (EBIT - Interest expense - Before tax preference dividend)
= 375000 / (375000 - 75000 - 10000)
= 375000 / 290000
= 1.29
Therefore, the firm's degree of financial leverage is 1.29.
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below are the choices that should accompanied your question above the answer is D.
<span>a. corporate responses to changes in the business environment
b. assessment of competitors strengths
c. identification of customer needs
d. development of core competencies</span>
Answer:
offset their losses with gains.
Explanation:
The component of an environmental scan which pertains to the income, expenditures, and resources affecting the cost of running a business or household is called economy.
An environmental scan refers to an industry analysis where one discusses external environmental factors that have, or could have, an impact on a business operations. This scan is done to identify and interpret potential trends occurring outside the organization.
An economy is a area of production and consumption activities that determines how resources are allocated among all of its participants. An economy is usually region-based, for instance, a country or a town. Thus, it is the component of an environmental scan.
Hence, a country's economy is the wealth that it gets from business and industry.
To learn more about environmental scan here:
brainly.com/question/26441012
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