Business, 18.08.2019 01:10 genyjoannerubiera

P13-12: financial leverage max small has outstanding school loans that require a monthly payment of $1,000. he needs to buy a new car for work and estimates that this pur-chase will add $350 per month to his existing monthly obligations. max will have $3,000 available after meeting all his monthly living (operating) expenses. this amount could vary by plus or minus 10%. a. to assess the potential impact of the additional borrowing on his financial leverage, calculate the dfl in tabular form for both the current and proposed loan payments, using max’s available $3,000 as a base and a 10% change. b. can max afford the additional loan payment? c. should max take on the additional loan payment?

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