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Which one of these best supports the argument that financial leverage increases the risk to shareholders? Select one: a. EPS is directly related to EBIT

Which one of these best supports the argument that financial leverage increases the risk to shareholders?

Select one:

a. EPS is directly related to EBIT

b. Individuals employ homemade leverage

c. the variability of a firm's EPS increases when leverage is used

d. The value of a firm increases with leverage in the presence of taxes

e. The number of shares outstanding tends to decrease when leverage is used

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