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which of the following is TRUE regarding EBIT-EPS analysis? A. It is a basic tool of capital structure management. B. It ignores the implicit cost

which of the following is TRUE regarding EBIT-EPS analysis?

  • A. It is a basic tool of capital structure management.
  • B. It ignores the implicit cost of debt financing.
  • C. it double counts the cost of debt financing.
  • D. it applies only to firms with large amounts of debt in their capital structure.
  • E. Both a and b.

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