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An EPS-Operating Income Graph,for Different Debt Ratios,shows The

Question 2

Multiple Choice

An EPS-operating income graph,for different debt ratios,shows the:
I.greater risk associated with debt financing,which is evidenced by a greater slope;
II.the break-even point where EPS of two different debt ratios are equal;
III.the minimum earnings needed to pay the debt financing for a given level of debt


A) I only
B) II only
C) III only
D) I,II,and III only

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