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Question
Which of the following statements is correct?
a. Suppose Company A's EPS is expected to experience a larger percentage change in response to a given percentage change in sales than Company B's EPS. Other things held constant, Company A would appear to have more business risk than Company B.
b. Statement a would be correct if the term "EBIT" were substituted for "EPS."
c. Statement a would be correct if the term "EBIT" were substituted for "sales."
d. Statement a would be correct if the words "financial risk" were substituted for "business risk."
e. The above statements are all false.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Q:
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