General Studies · Leverage Analysis
A company increases its proportion of debt financing significantly. As a result, earnings per share (EPS) become highly sensitive to fluctuations in EBIT. This phenomenon reflects the:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Degree of combined leverage
- 2Degree of financial leverage✓
- 3Dividend leverage effect
- 4Degree of operating leverage
Correct answer
Degree of financial leverage
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