subject
Business, 22.01.2020 06:32 VamPL

When comparing levered versus unlevered capital structures, why does leverage work to increase eps for very high levels of earnings before interest and tax (ebit)? a. because interest payments on debt vary with ebit levels such that low ebit leads to the lowest interest payments. b. because interest payments on the debt stay fixed, leaving the remaining income to be distributed among less shares of stockc. because risk units of debt are likely to be lower than risk units assigned to equityd. because other things equal, more taxes are paid under the levered capital structure than under an unlevered capital structuree. because interest payments on debt can be put off until some date in the future such as the date of debt maturity

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 23:30
Using the exxon data as an example what would be the market capitalization of penny's pickles if each share is selling for $175.35?
Answers: 3
question
Business, 22.06.2019 04:50
Allie and sarah decided that they want to purchase renters insurance for the apartment they share. they made a list of all of the items to be covered by the insurance policy, along with their estimated values. if the items to be covered total more than $3000, the insurance company charges an annual premium of 23% of the total value of the items. if the items to be covered total $3000 or less, the insurance company charges an annual premium of 20% of the total value of the items.
Answers: 1
question
Business, 22.06.2019 11:50
The basic difference between macroeconomics and microeconomics is that: a. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets). b. macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. c. microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). d. macroeconomics is concerned with generalization while microeconomics is concerned with specialization.
Answers: 3
question
Business, 22.06.2019 19:30
Which of the following statements are false regarding activity-based costing? non-manufacturing costs are important to include when calculating the cost of each product. costs are allocated based on a pre-determined overhead rate. transitioning from traditional costing methods to activity-based costing can be complicated and costly. activity-based costing follows the same basic calculation methods as traditional costing approaches. none of the above
Answers: 2
You know the right answer?
When comparing levered versus unlevered capital structures, why does leverage work to increase eps f...
Questions
question
Biology, 12.12.2020 21:20
question
Mathematics, 12.12.2020 21:20
question
Mathematics, 12.12.2020 21:20
question
Mathematics, 12.12.2020 21:20
question
Mathematics, 12.12.2020 21:20
question
Social Studies, 12.12.2020 21:20
question
Mathematics, 12.12.2020 21:20