If a change in leverage raises a firms earnings per share, should this cause its share price

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If a change in leverage raises a firm’s earnings per share, should this cause its share price to rise in a perfect market?

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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 07, 2024 01:00 AM

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If a change in leverage raises a firms earnings per share, should this cause its share price

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In a perfect market a change in leverage that increases a firms earnings per share EPS can influence its share price but the impact may not necessaril...View the full answer

Corporate Finance

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