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  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 13: Leverage and Capital Structure
  5. Question
    Financial Leverage Measures the Effect of Fixed Financing Costs on the Relationship
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Financial Leverage Measures the Effect of Fixed Financing Costs on the Relationship

Question 18

Question 18

Multiple Choice

Financial leverage measures the effect of fixed financing costs on the relationship between


A) Sales and EBIT.
B) Sales and EPS.
C) EBIT and EPS.
D) none of the above.

Correct Answer:

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