Why is EBIT generally considered independent of financial leverage? Why might EBIT actually be affected by financial

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Why is EBIT generally considered independent of financial leverage? Why might EBIT actually be affected by financial leverage at high debt levels?

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Oct 05, 2011 07:42 AM

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Why is EBIT 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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Why is EBIT generally considered independent of financial leverage? Why might EBIT actually be affected by financial

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EBIT depends on sales and operating costs that generally are not affected by the firms use ...View the full answer

Fundamentals of Financial Management

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