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

Question 169

Question 169

Multiple Choice

Total leverage measures the effect of fixed costs on the relationship between


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

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