Exam IIA-CIA-Part3 Topic 2 Question 134 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam
Question #: 134
Topic #: 2
The degree of financial leverage of B, to two decimal places, is:

Suggested Answer: B Vote an answer

The degree of financial leverage for B. may be calculated as profit before interest and taxes
(PBIT), divided by PBIT minus interest. PBIT is 200 95 profit 10 interest 95 tax expense). Thus, the DFL is 1.05 [200 - 200 - 10)].

by Valentine at Oct 13, 2025, 10:53 PM

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