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

question 90

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

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Definitions:

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