Question: When comparing levered vs. unlevered capital structures, leverage works to increase EPS for high levels of operating income because interest payments on the debt A.

When comparing levered vs. unlevered capital structures, leverage works to increase EPS for high levels of operating income because interest payments on the debt

A. stay fixed, leaving less income to be distributed over more shares.

B. stay fixed, leaving more income to be distributed over fewer shares.

C. stay fixed, leaving less income to be distributed over fewer shares.

D. vary with EBIT levels.

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