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[5 Points] Which of the following statements are correct concerning the relationship between a levered and an unlevered capital structure? Ignore taxes. EPS are more
- [5 Points] Which of the following statements are correct concerning the relationship between a levered and an unlevered capital structure? Ignore taxes.
- EPS are more sensitive to changes in EBIT when a firm is levered.
- The earnings per share will equal zero when EBIT is zero for a levered firm.
- Based on MM Proposition II without taxes, WACC of a levered firm is the same as that of an unlevered firm.
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Authors: Jack Jones
1st Edition
1545269920, 978-1545269923
