Lyceum Co. reported profit of $8.3 million, interest expense of $.5 million and they are in a 30% tax rate bracket. Their average total assets are $65.8 million and average shareholders' equity is $48.6 million. What is Lyceum's financial leverage advantage or disadvantage?
A) 3.7%
B) 4.0%
C) 4.7%
D) 3.9%

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The Answer of Lyceum Co. reported profit of $8.3 million, interest expense of $.5 million and they are in a 30% tax rate bracket. Their average total assets are $65.8 million and average shareholders' equity is $48.6 million. What is Lyceum's financial leverage advantage or disadvantage?
A) 3.7%
B) 4.0%
C) 4.7%
D) 3.9%

Lyceum Co Reported Profit of $8