Question: 1 How does financial leverage affect EPS? A Holding EBIT equal, increasing leverage will cause EPS to increase under all circumstances B. Increasing leverage will

1 How does financial leverage affect EPS? A Holding EBIT equal, increasing leverage will cause EPS to increase under all circumstances B. Increasing leverage will cause EPS to be more sensitive to a change in EBIT (assuming EBIT>) C.lif a firm buy back $1 million worth of equity by issuing $1million worth of debt, then its financial leverage will increase and EPS will decrease in all circumstances ) D. Leverage has no effect on EPS

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