Question
--Operating leverage means financing a portion of a firm's earnings per share with debt. True or false --An increase in financial leverage will increase the
--Operating leverage means financing a portion of a firm's earnings per share with debt. True or false
--An increase in financial leverage will increase the absolute value of EPS, everything else equal. True or False
--The firm's cost of capital is important when evaluation the firm's overall value, but should not be used to evaluate individual projects which have their own unique characteristics. true or false
--Break-even analysis ignores fixed costs because fixed costs do not change. True or False
--As production levels increase, fixed costs stay the same in total, but decrease on a per unit basis. true or false
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