The increase in risk to shareholders when financial leverage is introduced is best evidenced by:
A) higher EPS as EBIT increases.
B) a higher variability of EPS with debt than with all-equity financing.
C) increased use of homemade leverage.
D) the increase in taxes.
E) decreasing earnings as EBIT increases.
B) a higher variability of EPS with debt than with all-equity financing.
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Describe the five potential sources of power as suggested by French and Raven.
What will be an ideal response?
A typical marketing planning horizon is:
A) one month. B) six months. C) one year. D) five years.
Some companies have a(n) ________ policy under which an employer refuses to hire or terminates a worker on the basis of the spouse's working at the same firm.
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In a guaranty situation, the original contract is between the ________
A) creditor and the guarantor B) debtor and the creditor C) debtor and the guarantor D) creditor and the lessee