What is parkers degree of financial leverage

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Parker Inventmemts has EBIT of $20,000, interest expense of $2,900, and preffered dividends of $3,980. If it pays taxes of rate of 38%, what is Parker's degree of financial leverage (DFL) at a base level of EBIT of $20,000

The Degree of Finacial Leverage is?

 

Reference no: EM13266741

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