单选题

Using the firm's income statement presented, its degree of financial leverage is closest to:

A、 1.5.
B、 1.7.
C、 2.6.

【正确答案】 A

【答案解析】

A is correct. DFL = (Operating income) + (Operating income - Interest expense) or operating income divided by pretax earnings = $3.6 + ($3.6 - $1.2) = 1.50.