Variability in a firm's EPS reflects both the firm's operating risk and its financial risk.

Name: Variability in a firm's EPS reflects both the firm's operating risk and its financial risk.
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Quizplus · Accepted Answer

EPS variability can be attributed to both operating risk, which is the risk associated with a company's core business operations, and financial risk, which is the risk associated with the company's financial structure and the use of debt financing.

Variability in a Firm's EPS Reflects Both the Firm's Operating