Why is EBIT generally considered to be independent of financial leverage? Why might EBIT actually be influenced

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Why is EBIT generally considered to be independent of financial leverage? Why might EBIT actually be influenced by financial leverage at high debt levels?

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Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Question Posted: Sep 22, 2011 05:08 PM

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Why EBIT is generally considered to be independent of financial leverage? Why might EBIT actually be influenced by financial leverage at high debt levels?
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Why is EBIT generally considered to be independent of financial leverage? Why might EBIT actually be influenced

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EBIT depends on sales and operating costs Interest is deduc...View the full answer

Corporate Finance A Focused Approach

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