E13-4 Parker Investments has EBIT of $20,000, interest expense of $3,000, and preferred dividends of $4,000. If it pays taxes at a rate of 38%, what is Parker's degree of financial leverage (DFL) at a base level of EBIT of $20,000?
Click here for the solution: Parker Investments has EBIT of $20,000, interest expense of $3,000, and preferred dividends of $4,000
