Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2)

Which of the following formulas represents the calculation of the degree of financial leverage?

1
[NI + T + I] / [NI – I – PD / (1 – T)]
2
EBIT / [EBIT – I – PD / (1 – T)]
3
EBIT / [NI – I – PD / (1 – T)]
4
[NI – T + I] / [NI – I + PD / (1 – T)] 
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