If a Firm Utilizes Debt Financing, an X% Decline in Earnings

question 50

True/False

If a firm utilizes debt financing, an X% decline in earnings before interest and taxes (EBIT) will result in a decline in earnings per share that is larger than X.

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Definitions:

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A grilled or steamed sausage served in the slit of a partially sliced bun, often with various condiments and toppings.

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