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    Managerial Finance Study Set 1
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    Exam 12: Leverage and Capital Structure
  5. Question
    Financial Leverage Measures the Effect of Fixed Operating Costs on the Relationship
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Financial Leverage Measures the Effect of Fixed Operating Costs on the Relationship

Question 214

Question 214

Multiple Choice

Financial leverage measures the effect of fixed operating 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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