Which one of the following dates is used to determine which shareholders will receive a dividend payment?

A. Date of payment

B. Date of record

C.Declaration date

D. Ex-dividend date

E. Ex-rights date

38. Which one of the following statements is correct concerning the relationship between a levered and an unlevered capital structure? Ignore taxes.

A. The earnings per share will equal when EBIT is zero for a levered firm

B. EPS are more sensitive to changes in EBIT when a firm is unlevered

C. At the brack-even point, there is no advantage to debt.

D. The advantages of leverage are inversely related to the level of EBIT,

E. The use of leverage at any level of EBIT increases the EPS.

37. Assume you are reviewing a graph that plots earnings per share (EPS) on the vertical axis, against earnings before interest and taxes (EBIT) on the horizontal axis. The steeper the slope of the plotted line the:

A. higher the tax rate

B. lower the impact of financial leverage

C. greater the sensitivity of EPS to changes in EBIT

D. lower the probability of a negative EPS.

E. lower the debt-equity ratio.