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A conservative financing plan involves


A) heavy reliance on debt.
B) heavy reliance on equity.
C) a high degree of financial leverage.
D) a high degree of combined leverage.

Correct Answer

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Combined leverage is concerned with the relationship between


A) changes in EBIT and changes in EPS.
B) changes in volume and changes in EPS.
C) changes in volume and changes in EBIT.
D) changes in EBIT and changes in net income.

Correct Answer

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