Boylston Inc.'s total interest bearing debt is $10,000,000 on which it pays interest at the rate of
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Question:
Boylston Inc.'s total interest bearing debt is $10,000,000 on which it pays interest at the rate of 5%. Boylston's rate of return on assets is 10%. How much cash flow does leverage add to shareholders equity?
A. $500,000
B. $1,000,000
C. $(500,000) negative cash flow
D. $(1,000,000) negative cash flow.
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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