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betterway betterway
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7 years ago
The effect of financial leverage is such that an increase in a firm's earnings before interest and taxes (EBIT) results in a more than proportional increase in the firm's earnings per share (EPS), while a decrease in the firm's EBIT results in a less than proportional decrease in EPS.
Textbook 
Principles of Managerial Finance

Principles of Managerial Finance


Edition: 14th
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donnabandonnaban
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7 years ago
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