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  3. Study Set
    Principles of Corporate Finance Study Set 4
  4. Exam
    Exam 10: Leverage and Capital Structure
  5. Question
    Through the Effects of Financial Leverage, When EBIT Increases, Earnings
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Through the Effects of Financial Leverage, When EBIT Increases, Earnings

Question 3

Question 3

Multiple Choice

Through the effects of financial leverage, when EBIT increases, earnings per share will


A) decrease.
B) remain unchanged.
C) increase.
D) change in an undetermined direction.

Correct Answer:

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