Financial Leverage Impacts the Performance of the Firm By

question 50

Multiple Choice

Financial leverage impacts the performance of the firm by:

• A) increasing the volatility of the firm's EBIT.
• B) decreasing the volatility of the firm's EBIT.
• C) decreasing the volatility of the firm's net income.
• D) increasing the volatility of the firm's net income.

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Definitions:

Small Business

Any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

Competitive Area

The space or domain in which businesses compete against each other for market share.

Independently Owned

Refers to a business or property that is owned by an individual or a group without corporate or external control.