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c. What is the firm's forward P/E ratio (that is, the share price divided by the expected earnings for the coming year) if it issues
c. What is the firm's forward P/E ratio (that is, the share price divided by the expected earnings for the coming year) if it issues equity? What is the firm's forward P/E ratio if it issues debt? How can you explain the difference? What is the firm's forward P/E ratio if it issues equity? What is the firm's forward P/E ratio if it issues debt? How can you explain the difference? (Select the best choice below.) A. The higher P/E ratio is justified because with leverage, the EPS will decrease at a faster rate. B. The lower P/E ratio is justified because with leverage, the EPS will decrease at a faster rate. C. The lower P/E ratio is justified because with leverage, EPS will grow at a faster rate. D. The higher P/E ratio is justified because with leverage, EPS will grow at a faster rate
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