Other things held constant,the greater the firm's use of debt,the greater the change in EPS that will result from a change in sales volume.

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This is because increased debt means higher interest payments, which increase the fixed costs of the firm. Therefore, a change in sales volume, which affects variable costs, will have a greater impact on the firm's earnings per share (EPS) due to the higher fixed costs associated with the increased use of debt.

Other Things Held Constant,the Greater the Firm's Use of Debt,the