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

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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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Financial management theory and practice

ISBN: 978-0324422696

12th Edition

Authors: Eugene F. Brigham and Michael C. Ehrhardt

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Question Posted: Mar 18, 2010 12:19 AM

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Why EBIT is 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

Financial management theory and practice

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