Which of the following statements is most correct?
A) Increasing financial leverage is one way to increase a firm's basic earning power (BEP) .
B) Firms with lower fixed costs tend to have greater operating leverage.
C) The debt ratio which maximises EPS generally exceeds the debt ratio which maximises share price.
D) Both a and b are correct.
E) Both a and c are correct.
Correct Answer:
Verified
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