Which Statement Is TRUE Regarding a Firm That Increases Financial

question 70

Multiple Choice

Which statement is TRUE regarding a firm that increases financial leverage?

• A) Average earnings per share increases,while shareholder risk increases.
• B) Average earnings per share increases,while shareholder risk decreases.
• C) Average earnings per share decreases,while shareholder risk decreases.
• D) Average earnings per share decreases,while shareholder risk increases.

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