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An EBIT-EPS chart dsipalys earnings per share (EPS) on the vertical axis and earnings before interest and tax (EBIT) on the horizontal axis for both
An EBIT-EPS chart dsipalys earnings per share (EPS) on the vertical axis and earnings before interest and tax (EBIT) on the horizontal axis for both levered and unlevered capital structures of a firm. In such a graph: Multiple Choice The levered firm's financial performance is less sensitive to change in EBIT than an unlevered firm. O An unlevered firm has consistently lower financial performance than the levered firm. When EBIT is zero, a levered firm will be running at a loss O O Below the break-even EBIT, the levered firm has the higher EPS
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