When comparing levered versus unlevered capital structures, Ask an Expert

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When comparing levered versus unlevered capital structures, leverage works to increase EPS for high levels of EBIT because interest payments on the debt:

A) stay fixed, leaving more income to be distributed over fewer shares.

B) stay fixed, leaving less income to be distributed over fewer shares.

C) stay fixed, leaving more income to be distributed over more shares.

D) stay fixed, leaving less income to be distributed over more shares.

E) vary with EBIT levels.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92357874

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