One Way of Measuring the Advantage of Financial Leverage to the Owners

Multiple Choice

One way of measuring the advantage of financial leverage to the owners of the company is ________.

A) to examine the earnings per share (EPS) of a company before borrowing from debt lenders
B) to examine the earnings per share (EPS) of a company after borrowing from debt lenders
C) to examine the dividends per share (DPS) of a company before and after borrowing from debt lenders
D) to examine the earnings per share (EPS) of a company before and after borrowing from debt lenders