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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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