Question: what is meant by financial leverage? . Problems 1. BU, Inc. has current assets of $6,050, net fixed assets of $24.750, long-term debt of $11.400,

what is meant by financial leverage?

. Problems 1. BU, Inc. has current assets of $6,050, net fixed assets of $24.750, long-term debt of $11.400, and current liabilities of $4500. What is the value of the shareholders' equity account for the firm? What is the networking capital? 2. Salty Chips has sales of $862,000, operating costs of $85,000, depreciation expense of $41,000 interest expense of $40,500 and a tax rate of 20%. What is the net income? What if the firm paid out $125,000 in cash dividends? What is the addition to retained earnings

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