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Below the Break-Even EBIT, Increased Financial Leverage Will _______ EPS

Question 224

Multiple Choice

Below the break-even EBIT, increased financial leverage will _______ EPS, all else the same. Assume there are no taxes.


A) Increase.
B) Decrease.
C) Not affect.
D) Either increase or decrease.
E) Increase EBIT but decrease.

Correct Answer:

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