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Author Question: Suppose you were to draw a graph in which the horizontal axis gave possible EBIT figures, and the ... (Read 19 times)

leilurhhh

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on: Apr 25, 2021
Suppose you were to draw a graph in which the horizontal axis gave possible EBIT figures, and the vertical axis held values for EPS. If you were to compare the graphs for a levered firm versus an unlevered firm, which of the following is TRUE? There are no taxes.
◦ The levered firm has a higher y-axis intercept and a lower slope value than does the unlevered firm.
◦ The levered firm has a higher y-axis intercept and a higher slope value than does the unlevered firm.
◦ The levered firm has a lower y-axis intercept and a higher slope value than does the unlevered firm.
◦ The levered firm has a lower y-axis intercept and a lower slope value than does the unlevered firm.
◦ The two graphs will be identical for the levered and unlevered firms.
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Marked as best answer by leilurhhh on Apr 25, 2021

billybob123

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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leilurhhh

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

tanna.moeller

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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