Which of the following statements is correct? A) Companies with lower fixed costs tend to have greater operating leverage. B) increasing financial leverage is one
Which of the following statements is correct?
A) Companies with lower fixed costs tend to have greater operating leverage.
B) increasing financial leverage is one way to increase a company's basic earning power (BEP)
C) The debt ration (D/A) that maximizes earnings per share (EPS) generally exceeds the Debt Ratio that maximizes stock price.
D) The Capital Structure that maximizes stock price also maximizes the Times Interest Earned Ratio.
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Authors: Robert Higgins, Jennifer Koski, Todd Mitton
13th Edition
1260772365, 978-1260772364
