P paulineh New member Joined Jan 21, 2010 Messages 1 Jan 21, 2010 #1 If a firm's EBIT is $100,000 and interest expense $75,000 calculate the degree of financial leverage (DFL). 100000 / 75000 = 1.33% I think I tried to follow the formula but still really not sure if this is correct
If a firm's EBIT is $100,000 and interest expense $75,000 calculate the degree of financial leverage (DFL). 100000 / 75000 = 1.33% I think I tried to follow the formula but still really not sure if this is correct