Find the Limit

question 1

Multiple Choice

Find the limit.

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Definitions:

Annual EBIT

Earnings Before Interest and Taxes calculated over a yearly period, indicating the profitability of a company before accounting for interest and tax expenses.

Homemade Leverage

The use of personal borrowing to change the overall amount of financial leverage to which the individual is exposed.

Capital Structure

The combination of a firm's long-term loans, particular short-term borrowings, ordinary shares, and preferred shares, which represents how a company funds its general activities and expansion.

Dividends

Distributions of earnings given to shareholders by a corporation, generally from its profits.