For an All-Equity Firm

Multiple Choice

For an all-equity firm,

A) as earnings before interest and taxes (EBIT) increases, the earnings per share (EPS) increases by the same percentage.
B) as EBIT increases, the EPS increases by a larger percentage.
C) as EBIT increases, the EPS decreases at the same rate.
D) as EBIT increases, the EPS decreases by a larger percentage.