It is possible that two firms could have identical financial and operating leverage, yet have different degrees of risk as measured by the variability of EPS.

Name: It is possible that two firms could have identical financial and operating leverage, yet have different degrees of risk as measured by the variability of EPS.
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IF one Firm's sales and earnings were more volatile than those oF the other, it could have greater EPS variability in spite of identical financial and operating leverage.

It Is Possible That Two Firms Could Have Identical Financial