True or False: "All else equal, higher financial leverage increases EPS above a firm's breakeven...

Question

True or False: "All else equal, higher financial leverage increases EPS above a firm's breakeven (indifference) EBIT."

Robert · Accepted Answer

Question: 
"All else equal, higher financial leverage increases EPS above a firm's breakeven (indifference) 
EBIT." 
TRUE or FALSE? 
Solution: 
The statement is true, as with the increase in the financial leverage, the volatility of a firm’s EPs 
also increases.

True or False: "All else equal, higher financial leverage increases EPS above a firm's breakeven (indifference) EBIT."

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