According to MM,leverage May Increase Expected Earnings Per Share but Still

question 67

Multiple Choice

According to MM,leverage may increase expected earnings per share but still leave the share price unchanged because:

• A) the firm's operating risk decreases.
• B) the number of shares is decreased.
• C) the required return on equity increases.
• D) the firm is less risky.

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Definitions:

Validation Text Property

A feature in database and form design that defines the message displayed to users when entered data does not meet validation rules.

Table

A structured arrangement of data organized into rows and columns within a document or database.

Design View

A mode in software applications that allows users to layout or modify elements visually, without interacting with code directly.

Limit To List

A feature in data validation that restricts input to a predefined set of values, ensuring data integrity.