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Author Question: Provided a firm does not use an extreme amount of debt, financial leverage typically affects both ... (Read 888 times)

yulisa3298

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Question 1

Other things held constant, an increase in financial leverage will decrease a firm’s market (or systematic) risk as measured by its beta coefficient.

◦ true
◦ false

Question 2

Provided a firm does not use an extreme amount of debt, financial leverage typically affects both EPS and EBIT, while operating leverage affects only EBIT.

◦ true
◦ false


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Marked as best answer by yulisa3298 on Aug 7, 2023

Jaclyn92G6

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yulisa3298

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review


bblaney

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Reply 3 on: Yesterday
Wow, this really help

 

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