Lombardo Company had net income of $70,000 and interest expense of $10,000. If the corporate tax rate was 30%, determine its Degree of Financial Leverage (DFL).
A) 1.30
B) 1.25
C) 1.20
D) 1.15
E) 1.10

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The Answer of Lombardo Company had net income of $70,000 and interest expense of $10,000. If the corporate tax rate was 30%, determine its Degree of Financial Leverage (DFL).
A) 1.30
B) 1.25
C) 1.20
D) 1.15
E) 1.10

Lombardo Company Had Net Income of $70,000 and Interest Expense