Leverage can ________ a firm's expected earnings per share,but does not necessarily increase the share price.
A)decrease
B)dilute
C)increase
D)not change

Question

Quizplus · Accepted Answer

Leverage can increase a firm's expected earnings per share by allowing them to generate more profits with a smaller investment. However, an increase in earnings per share does not always result in an increase in share price. Share prices are influenced by a variety of factors, including market conditions and investor sentiment.

Leverage Can ________ a Firm's Expected Earnings Per Share,but Does