Economics · Degree of Financial Leverage
Which formula correctly represents the calculation of the Degree of Financial Leverage (DFL) when preference shares are included?
- 1NI - T + INI - I + PD1 - T
- 2EBITNI - I - PD1 - T
- 3EBITEBIT - I - PD1 - T✓
- 4NI + T + INI - I - PD1 - T
Correct answer
EBITEBIT - I - PD1 - T
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