Through the Effects of Financial Leverage, When EBIT Increases, Earnings

question 3

Multiple Choice

Through the effects of financial leverage, when EBIT increases, earnings per share will

• A) decrease.
• B) remain unchanged.
• C) increase.
• D) change in an undetermined direction.

---

Definitions:

Data

Facts and statistics collected together for reference or analysis.

Recommendations

Suggestions or advice given based on analysis or experience, intended to guide decisions or actions.

Purpose Statement

A declaration made by an individual or organization that outlines their intentions, goals, or objectives, providing a clear direction for actions.

Problem Statement

A brief explanation of a problem that needs solving or a situation that requires enhancement.