For an all-equity firm,
A) as earnings before interest and taxes (EBIT) increases, the earnings per share (EPS) increases by the same percentage.
B) as EBIT increases, the EPS increases by a larger percentage.
C) as EBIT increases, the EPS decreases at the same rate.
D) as EBIT increases, the EPS decreases by a larger percentage.
Correct Answer:
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