If a firm increases its use of financial leverage,then what would we generally expect for the effect of that increased leverage to have on an EPS that is already very low?

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When a firm increases its use of financial leverage, it means it is relying more on debt financing instead of equity financing. This increases the financial risk of the company, and if the EPS is already very low, the additional interest expense from the increased debt could further reduce the EPS. Therefore, we can generally expect that the EPS would be lower with financial leverage.

If a Firm Increases Its Use of Financial Leverage,then What