Bowden Building Supply reported an EBIT of $5,531,500, has a 35% tax rate, pays interest of...

 

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Bowden Building Supply reported an EBIT of $5,531,500, has a 35% tax rate, pays interest of $480,000 on $9,290,000 of debt and $0.60 to each of its 500,000 common shares outstanding. What is the company experiencing? Select one: O The presence of financial leverage as indicated by a ratio of 1.1 O No presence of financial leverage as indicated by a ratio of 1.0 O The presence of financial leverage as indicated by a ratio of 1.8 No presence of financial leverage as indicated by a ratio of 0.6 Bowden Building Supply reported an EBIT of $5,531,500, has a 35% tax rate, pays interest of $480,000 on $9,290,000 of debt and $0.60 to each of its 500,000 common shares outstanding. What is the company experiencing? Select one: O The presence of financial leverage as indicated by a ratio of 1.1 O No presence of financial leverage as indicated by a ratio of 1.0 O The presence of financial leverage as indicated by a ratio of 1.8 No presence of financial leverage as indicated by a ratio of 0.6

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