For an all$-$equity firm:

Question $8$ options:

a$)$

as earnings before interest and taxes $($EBIT$)$ increases, the earnings per share $($EPS$)$ increases by the same percentage

b$)$

as EBIT increases, the EPS increases by a larger percentage

c$)$

as EBIT increases, the EPS decreases at the same rate

d$)$

as EBIT increases, the EPS decreases by a larger percentage