If a Firm Increases Its Use of Financial Leverage,then What

question 72

Multiple Choice

If a firm increases its use of financial leverage,then what would we generally expect for the effect of that increased leverage to have on an EPS that is already very low?

• A) EPS would be lower with financial leverage
• B) EPS would always be the same with financial leverage
• C) EPS would be higher with financial leverage
• D) it is not possible to determine

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