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    Business
  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 13: Leverage and Capital Structure
  5. Question
    Financial Leverage May Be Defined as the Potential Use of Variable
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Financial Leverage May Be Defined as the Potential Use of Variable

Question 200

Question 200

True/False

Financial leverage may be defined as the potential use of variable financial costs to magnify the effects of changes in earnings before interest and taxes (EBIT) on a firm's earnings per share (EPS).

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