Fluctuations in EBIT result in: - 1471

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Fluctuations in EBIT result in:

          a.   fluctuations in EPS, which might be larger or smaller as financial leverage increases.

          b.   smaller fluctuations in EPS, the greater the degree of financial leverage.

          c.   greater fluctuations in EPS, the greater the degree of financial leverage.

          d.   equal fluctuations in EPS, the greater the degree of financial leverage.

Solution Description

Fluctuations in EBIT result in: